An OR statement (written [tex] A \lor B [/tex]) is true if either one of the statements is true, or both. This is the truth table:
[tex]\begin{array}{cc|c}T&T&T\\T&F&T\\F&T&F\\F&F&F\end{array}[/tex]
In this case, both statements are true, because 5 is indeed smaller than 7, and 7 is smaller than 12. This means that you're in the first row of the truth table, and so the correct option is the first.
