Concept:
Total subsets: \(2^n\)
Step 1:
\[
A = \{1,2,3,4,5,6,7\},\quad B \cap A = \{3,6,7\}
\]
Step 2:
Subsets with \(C \cap B = \phi\) means no element from \(\{3,6,7\}\)
Remaining elements:
\[
\{1,2,4,5\} \Rightarrow 4 \text{ elements}
\]
\[
\text{Number of such subsets} = 2^4 = 16
\]
Step 3:
Total subsets of A:
\[
2^7 = 128
\]
Step 4:
Required subsets:
\[
128 - 16 = 112
\]