Take the following as truth: 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.
Then the following statement: "The Museu de Arte Sacra is located in the palace that was once the house of the Bishop of Funchal." is true, false, or inconclusive?