Let the speed of the cars be v1 and v2.
Frequency received by the car, f1 = (v/(v-v1))f0
Frequency reflected by car, f2 = ((v+v2)/(v))(v/(v-v1))f0
Δf = f'2 - f1 = ((v+v2)/(v-v1) - v/(v-v1))f0
Solving we get:
Δf = (2vv2/(v-v1))f0
Equating this Δf to 1.2f0/100 we get, v2 - v1 = 7