Hi :)
Think of time interval 4pm to 5 pm as interval [0,1]
{For instance: 4.15 pm is like 1/4; 4.30 pm = 1/2; 4.45 pm is equivalent to 3/4 and 5 pm is equivalent to 1}
Let, X - A's arrival time ~ U[0,1]
and Y - B's arrival time ~ U[0,1]
A and B agree to meet not more than 15 mins.. So, its like finding the following expression:
Pr(|X -Y| < 1/4) [ shaded region in the graph]
= 1 - (sum of two triangles)
= 1 - 1/2*3/4*3/4 - 1/2*3/4*3/4
= 7/16
:)