The correct option is B 7
Consider the letters AASSSSIN. The three letter palindromes are possible only with starting letter A and S.
Consider the palindromes starting with A
A−A
The middle letters can be S,I,N.
Hence there will be 3 palindromes starting with A.
Consider the palindromes starting with S
S−S
The middle letters can be S,A,I,N.
Hence there will be 4 palindromes starting with S.
Therefore in total there will be 7 three lettered palindromes.