First find the rectangle area: 61 × 7 = 427. The cut-out square area is 3 × 3 = 9. Remaining area = 427 − 9 = 418 square m. For composite figures, split the shape into simple parts or subtract the removed part. Here the square is cut out, so its area must be subtracted from the rectangle area, not added. So the correct choice is 418 m².