Step 1: Concept
In heat exchangers (like cooling coils), the temperature difference between the two fluids varies along the length of the exchanger.
Step 2: Analysis
Let $\Delta T_1 = 37 - 7 = 30$°C and $\Delta T_2 = 37 - 27 = 10$°C.
Step 3: Meaning
To accurately calculate the heat transfer rate ($Q = UA\Delta T_m$), the Logarithmic Mean Temperature Difference (LMTD) is used because it accounts for the non-linear temperature change.
Step 4: Conclusion
The LMTD is the standard "average" used for such engineering calculations.
Final Answer: (C)