The correct statement is:
Mark’s method is correct, because even though it is impossible to deliver mail to 1.2 houses in a minute, 1.2 represents the unit rate of houses per minute.
Mark accurately calculated the unit rate of 1.2 houses per minute and then correctly used that rate to determine how many houses can be delivered to in 7.5 minutes. The fact that 1.2 is not a whole number does not invalidate the method; it simply means that the mail carrier can deliver to fractions of houses when considering time intervals. Thus, 1.2 houses per minute is a valid and useful measure in this context.