Step 1: Count the total number of slips contributed by each group.
Year-III: 100 students, each entered 3 times, giving \(100 \times 3 = 300\) slips.
Year-II: 150 students, each entered 2 times, giving \(150 \times 2 = 300\) slips.
Year-I: 200 students, each entered 1 time, giving \(200 \times 1 = 200\) slips.
Step 2: Find the total number of slips in the drum.
\[ 300 + 300 + 200 = 800 \]
Step 3: Identify the favourable outcomes.
A Year-III student's name is drawn if any one of the 300 Year-III slips is picked, since each slip represents an equally likely draw.
Step 4: Compute the probability.
\[ P(\text{Year-III}) = \frac{300}{800} = \frac{3}{8} \]
Step 5: Rule out the other options.
\(\frac{1}{8}\) and \(\frac{2}{9}\) and \(\frac{2}{7}\) do not equal \(\frac{300}{800}\) in lowest terms; only \(\frac{3}{8}\) matches the actual slip count.
Final Answer:
The probability that a Year-III student's name is chosen is \(\frac{3}{8}\).
\[ \boxed{\frac{3}{8}} \]