Step 1: Approach
Clear the fractional power first, because degree is defined only for a polynomial in the derivatives.
Step 2: Squaring
$\sqrt{y'} = 4y' + 7x \Rightarrow y' = (4y' + 7x)^2$, which contains $(y')^2$ as its highest power.
Step 3: Conclusion
The highest derivative is of first order and appears with power 2, so order = 1 and degree = 2.
Final Answer:
Order 1 and degree 2 match option A.
\[ \boxed{\text{(A) }\text{1, 2}} \]