The answer is 6.601, and therefore, the second option.
You need to start calculating from the innermost bracket and if there are no signs to do any operation then you need to multiply
For this case we have to:
x: Let the variable representing the number of people to travel in the group
y: Let the variable representing the number of miles traveled.
If friends only have $22 then we have the following inequality:

Now, if there are three people in the group we have that 

The taxi can travel a maximum of 19.33 miles.
On the other hand, if the group wants to travel 10 miles then we have to y = 10.

Thus, they could travel a maximum of 5 people.
ANswer:

Traveling 3 people, the taxi can travel a maximum of 19.33 miles
Traveling 10 miles, a maximum of 5 people can travel