Answer: The algorithm being applied is "Insertion Sort".
Step-by-step explanation:
Insertion sort works by iteratively inserting each element of the input list into its proper place in a growing sorted list. In each iteration, the algorithm selects the first unsorted element and compares it with each element in the sorted portion of the list until it finds its correct position. It then inserts the element into the sorted portion of the list and moves on to the next unsorted element.
In the given example, the first three elements of the list (9, 3, and 6) are compared and swapped to produce the partially sorted list 3 9 6 8 4 7. Then, the next unsorted element (6) is compared with the sorted elements (3 and 9) and inserted in its correct position between 3 and 9, resulting in the list 3 6 9 8 4 7.