I got this question too on my GMAC practice exam. The solution to this answer is best explained here: http://www.beatthegmat.com/10-8-10-2-10-7-10-3-is-closest-to-10-t18534.html Basically you factor out 10^2 from Numerator; 10^3 from Denominator so you are left with (10^6)/(10^5) which is equal to 1...