The case describes deep anterior overlap (deep bite) with lingually inclined maxillary central incisors and protruded lateral incisors. The key diagnostic feature is the maxillary molars positioned anterior to the mandibular molars, indicating a distal relationship of the mandibular molars to the maxillary molars. This molar relationship confirms an Angle's Class II malocclusion. The presence of lingually inclined central incisors and deep bite distinguishes this as Class II, division 2, unlike division 1 where incisors are proclined. Therefore, the correct diagnosis is Class II, division 2.

Reference: Contemporary Orthodontics, William R. Proffit, 6th Edition.