Right option is (b) {3}, {4,6}, {5}, {7}
To explain I would say: {3,5}, {3,6,7}, {4,5,6}. It is not a partition because these sets are not pairwise disjoint. The elements 3, 5 and 6 appear repeatedly these sets. {1}, {2,3,6}, {4}, {5} – this is a partition as they are pairwise disjoint. {3,4,6}, {7} – this is not a partition as element 5 is missing.
{5,6}, {5,7} – this is not a partition because it is missing the elements 3, 4 in any of the sets.