Hi wiiharish005,
When posting GMAT questions, you should post the ENTIRE prompt (with the 5 answer choices). Sometimes the answers are written in such a way so that you can avoid doing lots of math; without having the answers as reference though, we have no choice but to do all of the 'steps.' This prompt is oddly-worded, but the intent seems to be to determine what percentage of ALL the items are defective TVs...
Let's TEST VALUES...
IF.... there are 1,000 total items....
60% are TVs = 600 TVs
5% of the TVs are defective = (.05)(600) = 30 defective TVs
[spoiler]30/1,000 = 3%[/spoiler]
GMAT assassins aren't born, they're made,
Rich