A watch, which gains 5 seconds every 3 minutes, is set right at 8 AM. On the same day in the afternoon, when the faulty watch indicates 5:15, the actual time is

The actual time is 5:00 PM.

The watch shows 3 min 5 sec for every 3 real minutes.

From 8 AM it reads 5:15 PM, an elapsed 9 hr 15 min = 555 min.

Real time = 555 x 180/185 = 540 min = 9 hours.

So actual time = 8 AM + 9 hr = 5:00 PM.