To find the Volume of water released ,
we have to find the volume using both the diameters , before and after releasing the water , and then we can subtract the volumes , and we will get the Volume of water released from the balloon
Volume of the balloon initally when it was filled with water
Diameter = 9 inches
Radius = half of diameter = 4.5 inches
Volume = 
Plug in calculator and we get
Volume = 381.7 cubic inches
Now volume of balloon after the water is released
Diameter = 7.2 inches
Radius = half of diameter = 3.6 inches
Volume = 
Plug in the calculator , we get
Volume = 195.4 cubic inches
Now to find the volume of water released we subtract So we get
Volume of water released = 381.7 - 195.4 = 186.3 cubic inches
It means 186.3 cubic inches of water was released