1. The problem states that the temperature at 1 a.m. was $3 \frac{1}{2}$ degrees Fahrenheit, which is $3.5$ degrees. 2. The temperature changes by $-1 \frac{1}{2}$ degrees per hour for 7 hours. This means the temperature decreases by $1.5$ degrees each hour. 3. To find the total temperature change over 7 hours, multiply the rate of change by the number of hours: $$7 \times (-1.5) = -10.5$$ 4. This means the temperature dropped by $10.5$ degrees from 1 a.m. to 8 a.m. 5. The equation $7(-1.5) = -10.5$ represents the total temperature change, not the temperature at 8 a.m. 6. Therefore, the correct interpretation is that the temperature change from 1 a.m. to 8 a.m. was $-10 \frac{1}{2}$ degrees Fahrenheit. 7. The correct answer is option B.