In how many ways can $4$ men, $3$ women, and $5$ children be arranged in a circle if all have to be positioned side by side?
Given the wording of the question, there are indeed $(12 - 1)! = 11!$ distinguishable arrangements of the $4 + 3 + 5 = 12$ people up to rotation.
However, you said the stated answer is $4!3!5!$. This suggests that the author had a different question in mind, although the stated answer is not correct.
In how many ways can $4$ men, $3$ women, and $5$ children be arranged in a circle if all the men are seated together, all the women are seated together, and all the children are seated together?
We have three blocks of people to arrange in a circle. There are $(3 - 1)! = 2!$ distinguishable ways of arranging the blocks since either the blocks of men, women, and children are arranged in a clockwise order or anti-clockwise (counterclockwise) order. The four men can be arranged within their block in $4!$ ways, the three women can be arranged within their block in $3!$ ways, and the five children can be arranged within their block in $5!$ ways as we proceed clockwise around the circle. Hence, the number of distinguishable circular seating arrangements in which all the men sit together, all the women sit together, and all the children sit together is $2!5!4!3!$.
To obtain the stated answer, we would have to specify that the blocks of men, women, and children must be arranged in one of the two possible orientations of the blocks.