
Kaplan's answer is B, and their explanation is basically that the Pg at the bottom equals 8atm-3atm-1atm. However, I thought the definition of Pg is P (hydrostatic/absolute pressure) - Patm, rather than P - Po. Po for the bottom liquid with higher density is Patm + p1gh, which is 4 atm; however, Pg should be 7 atm at the bottom of the tank, right? So the ratio should be 3atm:7atm, which isn't even an answer choice...
Isn't the point of a "gauge" to be calibrated to read 0atm at atmospheric pressure so that only the additional pressure is read? Or am I wrong in thinking that? Kaplan says two opposing things in their review notes. First they define Pg = P - Patm, and they state that when P0 = Patm, Pg = pgh. That makes sense. However, in this answer they're implying that Pg = P - P0 = pgh; they're implying that no matter what P0 is (even if it's Patm + some other pressure), Pg = pgh. Isn't that false?
See below for my diagram of it:

Why would the answer be 3:4 instead of 3:7?