I agree the use of the word "only" means the statement precludes any of the other answers from being chosen at all.
I got it right but I assumed that the author just choose poor wording and made the choice as follows
7.0 SP4 is valid
2K SP3 + is valid
2K SP4 would be included in SP3 and up
that left 2005 RTM considering applying SP1 or SP2 as in place upgrade.
I was worried that the author wanted the first choice to be wrong because you are already on 200t but because the RTM was there I figured he or she was looking for applying the SP.
Half the questions posted here are unclear and require too many assumptions.
Just my opinion
-- Mark D Powell --