to check the degree of the polynomial, check the degree of each of its terms, and the highest one, is the degree of the polynomial, let's do so,
[tex]\bf xy^2+3x^2-7
\begin{cases}
x^1y^2\impliedby &1+2\\
&\textit{degree of 3}\\
3x^2\impliedby &2\\
&\textit{degree of 2}\\
7\\
7x^0y^0\impliedby &0+0\\
&\textit{degree of 0}
\end{cases}[/tex]
so, notice the highest degree for the terms.