I'm even confused with part (a).
I know how to do if password was length 8, and contained a mix of uppercase letters, lowercase letters, and digit, n = 26+26+10 = 62. Number of selections = 8. Total password combination = 62^8.
However, how would I incorporate the restrictions on only 1 uppercase, 5 lowercase and 2 digits allowed?
What you've done doesn't help; none of the places in the password is free to contain any type of character, so that's an extreme overcount. But you've shown that you know the basic idea.
The problem says,
... the password has length 8, being a mix of 1 uppercase letter (from {A, ..., Z}), 5 lowercase letters (from {a, ..., z}), and 2 digits (from {0, ..., 9}). They do not know in which order these symbols occur in the password.
So you can form a possible password by first choosing
which spaces use each type of character, and then choosing the
appropriate character for each.
How many ways can you choose which spaces contain each type? You might think of this as arranging ULLLLLDD in any possible order; or as choosing where to put the one uppercase, then where to put the two digits, then the rest are all lowercase.
Now, how many ways could you choose 1 uppercase, then 5 lowercase, then 2 digits, to go in those spaces?