Text: On the square's third (south) side is the very interesting Museu de Arte Sacra (Museum of Sacred Art), housed in what was a 17th-century palace, formerly the Bishop of Funchal's residence.
Entailment: The Museu de Arte Sacra is located in the palace that was once the house of the Bishop of Funchal.
Contradiction: The Museu de Arte Sacra is located in a 20th century warehouse.