Concept:
Two circles are "concentric" if they share the exact same centre point. Therefore, their equations will have identical $x$ and $y$ terms (like $x^2 + y^2 + 2gx + 2fy$) and will only differ by their constant term $C$. We can use the given radius to solve for this new constant.
Step 1: Find the centre of the original circle.
The original circle is $x^2 + y^2 - 8x + 6y - 11 = 0$.
Find $g$ and $f$: $2g = -8 \implies g = -4$, and $2f = 6 \implies f = 3$.
The shared centre is $(-g, -f) = (4, -3)$.
Step 2: Set up the equation for the new concentric circle.
Since it has the same centre, its equation starts the exact same way:
$$x^2 + y^2 - 8x + 6y + C = 0$$
We just need to determine the new constant $C$.
Step 3: Apply the radius formula to the new circle.
We are given that the new circle has a radius of $r = \sqrt{7}$.
Using the formula $r = \sqrt{g^2 + f^2 - C}$:
$$\sqrt{7} = \sqrt{(-4)^2 + (3)^2 - C}$$
Step 4: Solve for the constant C.
Square both sides of the equation to remove the square roots:
$$7 = 16 + 9 - C$$
$$7 = 25 - C$$
$$C = 25 - 7 = 18$$
Step 5: Construct the final equation.
Substitute $C = 18$ back into the general equation from
Step 2:
$$x^2 + y^2 - 8x + 6y + 18 = 0$$
Hence the correct answer is (B) $x^{2+y^{2}-8x+6y+18=0$}.