To find out how many balloons Terrance will have in each group and how many will be leftover, we need to divide 425 by 7.
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Perform the division: \[ 425 \div 7 = 60 \quad \text{(whole number)} \]
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To find the remainder: \[ 60 \times 7 = 420 \] \[ 425 - 420 = 5 \]
Thus, Terrance can put 60 balloons in each group, and he will have 5 balloons leftover.
Therefore, the correct response is: There will be 60 balloons in each group with 5 balloons leftover.