Hi gmat_winter,
This question is based on the Triangle Inequality Theorem, as the other posters have noted. Since the three Roman Numerals are all numbers, and the question asks what COULD be the value of A-B, you can take more of a 'hands-on' approach and TEST VALUES (instead of trying to handle this with the broad rules that the Theorem is base don.
We know that one of the three sides is a 7
I. COULD the difference in the other two sides be 4?
If the sides were 11 and 7, then we'd have an isosceles triangle with sides of 7, 7 and 11. The difference COULD be 4.
Roman Numeral I is possible.
II. COULD the difference in the other two sides be 7?
If the sides were 8 and 1, then we would not have a triangle - we'd have a line "on top" of another line (since 1+7 = 8).
If the sides were 9 and 2, then we'd have the same situation.
If the sides were 10 and 3, then we'd have the same situation.
Etc.
Roman Numeral II is NOT possible
III. COULD the difference in the other two sides be 12?
If the sides were 13 and 1, then the "1" and the "7" could not meet (they're too far away from one another).
If the sides were 14 and 2, then we'd have the same situation.
If the sides were 15 and 3, then we'd have the same situation.
Etc.
Roman Numeral III is NOT possible.
Only Roman Numeral 1 is possible.
Final Answer: A
GMAT assassins aren't born, they're made,
Rich