To find the volume \( V \) of a cone, you can use the formula:
\[ V = \frac{1}{3} \pi r^2 h \]
where:
- \( r \) is the radius of the base of the cone,
- \( h \) is the height of the cone,
- \( \pi \) is approximately 3.14.
In this case, the radius \( r \) is 3 inches and the height \( h \) is 7 inches. Plugging in these values:
\[ V = \frac{1}{3} \times 3.14 \times (3^2) \times 7 \]
Calculating \( 3^2 \):
\[ 3^2 = 9 \]
Now substitute back into the formula:
\[ V = \frac{1}{3} \times 3.14 \times 9 \times 7 \]
Now calculate \( 9 \times 7 \):
\[ 9 \times 7 = 63 \]
Now substitute this back into the formula:
\[ V = \frac{1}{3} \times 3.14 \times 63 \]
Now calculate \( 3.14 \times 63 \):
\[ 3.14 \times 63 = 197.82 \]
Finally, divide by 3 to get the volume:
\[ V = \frac{197.82}{3} = 65.94 \]
Rounding to the nearest hundredth, the volume of the coffee grounds the container can hold is
\[ \boxed{65.94} \text{ cubic inches}. \]