To be tax free, scholarships must be used to pay qualified educational expenses (QEE) in the same year that the money was received. There in one exception. Money received in 2024, for the first term of 2025 is qualified.
If that's the case, answer that question yes. That's the specific purpose of that question; to treat the $7000 as not being received in 2024. When you do your 2025 tax return, a year from now, treat the $7000 as being received in 2025.
