Explanation by Claudio Hurtado, GMAT QUANT Tutor:
We must devise a strategy that allows us, through bounding or another method, to draw a conclusion in order to choose the correct alternative.
Do you have any ideas? Take 3 minutes to come up with something, don’t be afraid, it doesn’t matter if you’re wrong, dare to try.
Alright, we can compare the given expression with a similar but more manageable one.
Do you see it? Take 2 more minutes and try to identify it.
Excellent, if we compare (2/23)^3 with (2/20)^3, what do you notice?
Yes, the second expression (2/20)^3 is greater than the first (2/23)^3.
Now, calculate (2/20)^3 and tell me the decimal it yields.
Notice that (2/20)^3=(1/20)^3, (2/20)^3=(1/10)3 why is that?
Very good, (2/20)^3=(1/10)^3= 0.001.
With what you have discovered so far, are you able to give an answer to the question? Take 2 minutes.
Alright, given that (2/23)^3<0.001, the third digit of (2/23)^3 must be less than 1 (and thus, there is only one possibility; the third digit of (2/23)^3 must be zero).
If you arrived at the answer, CONGRATULATIONS! If not, keep practising.