The gravitational force between the Earth and the satellite (its "weight") is inversely proportional to the distance between the centers of both objects.
On the surface, their centers are separated by 1 Earth radius.
12,000 miles above the surface, they're separated by 4 Earth radiii.
(4/1) = 4
So after the move, the satellite's weight is (1/4²) = 1/16 of its surface weight.
(321 lb) / (16) = (20 and a hair) lb
The correct choice from the given list is " <em>>20 lb "</em> .