You have been told the minimum requirements to "pass" the exam twice,
each time in a different way.
Suppose all the questions on the exam are worth $100$ points altogether.
Then to "pass" the exam (to be eligible for employment) you must get
at least $85$ points, which is $85\%$ of the highest possible score.
Now suppose $1000$ people take the exam.
Line up all the applicants according to their exam scores, highest score first.
The first $50$ applicants in this line all have scores that are as high as or higher than than the scores of any of the other $950$ applicants.
Those $50$ applicants are the "top $5\%$" of all applicants who took the exam.
What the question (as worded) does not say is whether these two criteria describe exactly the same set of eligible applicants, or whether these are just two criteria that were previously determined to be "passing" criteria.
(The employer could have said, "We won't take anyone who scores less than $85,$ but in any case we won't consider anyone who wasn't in the top $50$ even if their score is greater than $85.$")
In the case that these are two separate criteria, the question can't be answered. So let's assume the two criteria describe the same set of applicants. Then $950$ out of $1000$ applicants score less than $85\%$ on the exam.
In order to answer the question,
we also have to make some assumption about how to translate between scores stated as simple numbers (two scores that differ by the $7$-point standard deviation) and scores stated as percentages.
The simplest assumption is that the "$85\%$" score is a score of $85$ points.
Now you have a normal distribution with mean $\mu$ and standard deviation $7,$ with a $5\%$ probability for the random variable to be greater than $85.$ Find $\mu.$
I give this question low marks because of the huge unsupported assumptions it requires us to make in order to find any answer.
But those are the assumptions that I would guess the question-writer intended us to make.