402: Plugging in to Solve the SAT

This is from the end of a section of an SAT test, and is therefore a bitch to solve. At least, the results from the test seem to indicate so.  On a 5-choice multiple choice question, only 8% of respondents got this one right ... if they had covered their eyes, refused to read the question, and randomly guessed, they would have more than doubled their chances of getting it right. We can do better than that!

What numbers should I plug into the equations to test for correctness?

25. A watch loses x minutes every y hours. At this rate, how many hours will the watch lose in 1 week?

1. $7xy$
2. $\dfrac{7x}{y}$
3. $\dfrac{x}{7y}$
4. $\dfrac{14y}{5x}$
5. $\dfrac{14x}{5y}$