When flipping a fair coin three times, there are \( 2^3 = 8 \) possible outcomes. These outcomes are: \[ \text{HHH, HHT, HTH, HTT, THH, THT, TTH, TTT} \]
Step 1: We need to find the number of outcomes where exactly two heads occur. These outcomes are: \[ \text{HHT, HTH, THH} \]
Step 2: There are 3 outcomes where exactly two heads occur.
Step 3: The probability is the number of favorable outcomes divided by the total number of outcomes: \[ \text{Probability} = \frac{3}{8} \] Thus, the correct answer is 3/8.