Step 1: Count the moles:
One mole of $\text{O}_2$ weighs 32 g. For 7 g, the fraction of a mole is $\frac{7}{32}$.
Step 2: Use the gas law:
$PV = nRT$ gives $PV = \frac{7}{32}RT$.
Step 3: Why not 16:
Oxygen gas is $\text{O}_2$, so the mass of one mole is 32 g. Using 16 g would give the number of moles of oxygen atoms, not molecules.
Step 4: Check the units:
With $P$ in pascal, $V$ in cubic metre and $R = 8.314$ J/(mol K), the right side $\frac{7}{32}RT$ has the units of energy, the same as $PV$. Using 16 instead of 32 would give the number of oxygen atoms, which is not what the equation of state needs.
Final Answer:
Option (D).
\[ \boxed{PV=\frac{7}{32}RT \text{ (D)}} \]