-- "three non-zero digits";
so the last one can't be zero
-- "digits cannot be repeated" and "the first two digits are 9 and 8";
so the last one can't be 9 or 8
-- What's left ?
1, 2, 3, 4, 5, 6, or 7 . . . . . . . Seven possibilities.
-- Probability = (number of possible successes) / (number of possibilities)
That's 1/7 . (choice-D)