Step 1: Find the volume of the cylindrical pot.
\[
V_1 = \pi r_1^2 h_1
\]
Given $r_1 = 12$ cm and $h_1 = 7$ cm,
\[
V_1 = 3.14 \times 12^2 \times 7 = 3.14 \times 144 \times 7 = 3165.12 \, \text{cm}^3
\]
Step 2: Find the volume of one ice-cream cone.
Diameter of cone = 4 cm, so radius $r_2 = 2$ cm, and height $h_2 = 3.5$ cm.
\[
V_2 = \frac{1}{3} \pi r_2^2 h_2
\]
\[
V_2 = \frac{1}{3} \times 3.14 \times 2^2 \times 3.5 = \frac{1}{3} \times 3.14 \times 4 \times 3.5 = 14.66 \, \text{cm}^3
\]
Step 3: Find the number of students.
\[
\text{Number of students} = \frac{V_1}{V_2} = \frac{3165.12}{14.66} \approx 216
\]
Step 4: Conclusion.
Hence, 216 students can be served one cone each.
Correct Answer: 216 students