- Premise
The question you are given starts as "We randomly distribute 7 balls into 7 cells"
There is here a subtle point to clearify, as a first step.
"throwing, i.e. sequentially place, (distinguishable/undistinguishable) balls into (d/u) cells"
and
"distributing, (or placing, or arranging) balls (d/u) into (d/u) cells"
would lead to consider different
spaces of elementary events (equi-probable events), also depending on the lexical intepretation, and is a frequent source
of misunderstanding in this kind of a problems.
See, e.g., this post.
- The answer you are given
Not knowing the exact interpretation of the question, let's take it backwards
and see which intepretation the answer you have been given could correspond to.
$$
P = \left( {{{7!} \over {2!1!4!}}} \right)\quad \left( {\left( \matrix{
7 \cr
3 \cr} \right)4!} \right)\quad {1 \over {7^{\,7} }}
$$
Now
The first term
$$
{{{7!} \over {2! \; 1! \;4!}}}
$$
is the number of ways to align $2$ cells labelled A, $1$ cell labelled B and $4$ cells labelled C.
These correspond to the two empty cells, the one filled with three balls, and the four non-empty (i.e. equally filled with one ball each).
So the cells are distinguished by their position in the line and for their label = content.
The second term
$$
\left( \matrix{
7 \cr
3 \cr} \right)4! = \left( \matrix{
7 \cr
4 \cr} \right)4! = 7^{\,\underline {\,4\,} } = 7 \cdot 6 \cdot 5 \cdot 4
$$
is the number of ways to place $4$ labelled balls out of a total of $7$, into $4$ distinguishable cells.
The remaining $3$balls go into the only possible cell. However, there is not a $3!$ factor to account for their
permutation inside that cell.
That means that the balls' label order inside the cell B is not taken into account, or that it is considered
fixed, for instance increasing. Also the ordering inside each cell C (as well as A) can be considered fixed.
Thus the whole picture matches with the process of randomly throwing undistinguishable balls into distinguishable cells, which justifies
the division by $7^7$.