I can't answer you if it's an actual question, or if it's the actual level of the test. I do however thing I'm able to answer it for you:
First of all, I convert the knots into km/h (I'm from central Europe). 1 knot = 1,8 km/h. 175 kts = 324 km/h. 235 kts = 435 km/h. It should however be noted that 1 kts = 1 nm, which is the unit that professional pilots would use.
First of all, I would like to know how far the first plane has come by 45 mins: (0,75*425=326,25 km)
I now know the distance that plane 2 has to catch up. I can quickly calculate the difference in speed to be 60 kts = 111 km/h. So how long time does it take to do 326,25 km, when travelling 111 km/h? This is done by: (326,25/111=2,94 hours). ,94 hours = (0,94*60=56 mins) = total flight time to be 2 hours and 56 minutes = They will meet at 13:41
Now we only need the distance, which is pretty basic. How far does a plane travelling 435 km/h by 2 hours and 56 minutes get? (2,94*435=1278,9 km)
Correct me if I'm wrong