The clock gains 5 seconds for every 3 minutes, which is a gain of 1 second every 36 seconds.
From 07:00 A.M.
to 04:00 P.M.
is 9 hours, or 540 minutes.
The number of seconds gained in this time is:
\[
\frac{5}{3} \times 540 = 900 \text{ seconds} = 15 \text{ minutes.}
\]
Thus, the wrong time shown by the clock at 04:00 P.M.
will be 15 minutes ahead, so the correct time is 04:15 P.M.
Thus, the correct answer is 04:15 P.M.