Carla has one gallon of paint she is going to pour it into a paint tray that measures 10 inches wide 10 inches long and 7 inches deep

Let's convert the volume into inches

1in=2.54cm
1/2.54in=1cm

7cm =1/2.54 times 7 in=7/2.54 in

volume=length times width times height
volume=10in times 10in times 7/2.54in
volume=275.59055118110236220472440944882 in³
about 275.6 in³

ok, so the tray can hold 275.6 in³
1 gallon is 231 in³
231<275.6

it can hold it
it will not fill the tray

by how much?
275.59055118110236220472440944882-231=44.59055118110236220472440944882 in³

so the first option is correct