Let \(x\) be the price of an orange and \(y\) be the price of an apple.
Kiran's total cost for 5 oranges and 7 apples is \(5x + 7y\), and Harish's total cost for 2 oranges and 12 apples is \(2x + 12y\). Since both amounts are equal, we have the equation:
\[
5x + 7y = 2x + 12y
\]
Thus, the correct answer is option (2).