The first stone travels for 2+1.5=3.5secs.
The second stone travels for 1.5 secs.
Let first stone be dropped at t=0
Thus, distance travelled by it in 3.5 seconds is
12gt2=4.9(3.5)2=60.025 m
Distance travelled by balloon upwards in 2 seconds
=12at2=0.5×0.2×22=0.4 m
Distance travelled by stone 2 after being released
=0.5×9.8×1.52=11.025 m
Thus, distance between the 2 stones at required time
=60.025−(−0.4+11.025)=49.4 m