Explanation:

Divisibility rule for 11:
The difference between the sum of odd numbered digits and sum of even number digits, taken from right or left, is divisible by 11, then the number is divisible by 11

the number 7x86038 is exactly divisible by 11

Sum of odd numbered digits is 7+8+0+8 = 23

Sum of even numbered digits is x+6+3 = 9+x

23-(9+x) should be divisible by 11.

23-9-x = 14-x

The least number would be 3

We get 14-3 = 11 which is divisible by 11

So, x is 3

Hence, option 1 is the correct answer.