An explanation of the numbers in the problem.
For two random (independent, uniform) subsets of size $k$ from an $n$ element set, the expected size of their intersection is $\frac{k^2}{n}$. Here $k=7$ and $n=16$, and the average intersection size is $49/16$, which is slightly more than $3$, so that above-average intersections have $4$ or more elements.
In this question, you have rotations that can be used to adjust the relative position of the two sets, and problem is essentially to show that this repositioning can be done in a way that the intersection is larger ($\geq$) than average. Of course you can arrange for it to be larger than the average over all rotated placements, but the point is to make it larger than the average over all random placements. The calculations of "average" in its two meanings are almost identical, and the answers are equal.
Thus, to force intersection size of at least $s$ one needs $k^2 \geq (s-1)n+1$ with the most interesting cases happening when there is equality.