To determine which items cost less than $3.75 per item, we'll need to calculate the price per item for each category:
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Paperbacks: $10.65 for 3 items \[ \text{Price per item} = \frac{10.65}{3} = 3.55 \]
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Notebooks: $14.36 for 4 items \[ \text{Price per item} = \frac{14.36}{4} = 3.59 \]
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Puzzles: $11.85 for 3 items \[ \text{Price per item} = \frac{11.85}{3} = 3.95 \]
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Picture Frames: $15.20 for 4 items \[ \text{Price per item} = \frac{15.20}{4} = 3.80 \]
Now, we can compare the price per item to $3.75:
- Paperbacks: $3.55 (less than $3.75)
- Notebooks: $3.59 (less than $3.75)
- Puzzles: $3.95 (not less than $3.75)
- Picture Frames: $3.80 (not less than $3.75)
The items that cost less than $3.75 per item are paperbacks and notebooks.
So the answer is paperbacks and notebooks.