Final answer:
In Windows 7, a user with the need to install applications and change system settings should be assigned to the Administrators group to have the required permissions. Thus correct answer is option 1.
Step-by-step explanation:
In Windows 7, establishing a user account with extensive privileges involves integrating the user into the Administrators group. This group is pivotal for executing elevated actions like software installations, system setting alterations, and time adjustments. By assigning a user to the Administrators group, they gain comprehensive control over the system, surpassing the capabilities conferred by other groups like Power Users, Standard Users, or Guests. This elevated access allows the user to create and save files with unrestricted permissions, install applications seamlessly, and actively participate in configuring the system time.
It's essential to exercise caution when granting administrative privileges, as it opens the door to potential security risks. Striking a balance between user functionality and system security is crucial when tailoring access levels in a Windows 7 environment, ensuring optimal performance while safeguarding against unauthorized system modifications.