Answer:
A. 0.057
Explanation:
This problem can be result using a Binomial distribution, in which we have n identical events with a probability p of success.
The probability that x of the n events get success is given by:

Where nCx can be calculate as:

In this case there a 10 device with a probability 0.9 of function properly and we need to find the probability that 7 of these device function properly, so replacing values, we get:

P(7)=120*0.478*0.001
P(7)=0.057
Finally the probability, to the nearest thousandth, that 7 of the 10 devices function properly is 0.057