I don't know if this is the correct answer, but I will attempt at an solution,
The correct answer should be (A) 10:04:24am
Assuming the clock gains 5% over a period of 3 days, rather than gaining 5% everyday for a period of 3 days.
5% gain for a period of 3 days (24 x 3 hours) , translates to 3 hours 36 min gain
Since the Clock was late by 10 min on Monday 10:00am the clock time was 9:50am
After three days and gain of 3 hours 36 min, the time would be 1:26pm
Then the clock proceeds to lose 2% for a period of 7 days.
This translates to a loss of 3 hours 21 min and 36 seconds
So, taking 1:26pm as the time after 3 days of gain, after 7 days of loss, the time would be 10:04:24am
I think that (A) is the right answer, but offcourse, I may have made a mistake.