To find area, multiply (length x width)
First change all fractions into decimal:
3/4 = 0.75, 2 1/2 = 2.5
Multiply
7 x 0.75 = 5.25
2.5 x 2.5 = 6.25 (note the side lengths are the same for a square, and so you multiply the same number twice)
The square is larger than the rectangle by 1 inch²
hope this helps