The correct option is B 960
Let the two boys who want to seat together be A and B and the other two be X and Y.
Consider A and B as one entity so that they always seat together.
So number of ways of arranging them around a circular table is
(7−1)!×2!
Above condition is the case where A and B are always together but X and Y shouldn't be together.
So subtracting the case of X and Y always together from the above case will give the case where A and B are always together and X and Y are never together.
So required no. of ways =(7−1)!×2!−(6−1)!×2!×2!
=960