The answer is the third one.
The way I think through these problems is that where you multiply (-7x), you use addition, and where you use addition (-4), you multiply.
The answers added together will equal the second number, -7, and multiplied will give you the third, -4.
What you had chosen as the answer was close. But 7.53+-0.53 equals positive 7, not negative. However they do round to -4 when multiplied.
The correct answer, -7.53 and 0.53, do equal -7 when added together and equal -4 when multiplied.
We use algebraic equations in our daily lives without knowing it. For example, when we go shopping, calculate grocery expenses, or even fill our gas tanks, we are using equations. Let's say we needed to fill our gas tank, but we only had $15.00 to do so. If the price of gas is $3.00 per gallon, how many gallons could we buy? We use the simply algebraic equation of

to calculate the total gallons that can be bought. x = the money we have. y = price per gallon of gas.

= 5. So with $15.00, we can buy 5 gallons of gas; and that is just one example of using an algebraic equation in everyday life!