The "at least" confuses me. But I am assuming one head will appear. Making P(first head) = 1.
Correct answer: 3/7
I start with the formula: P(A and B) = P(A) • P(B|A)
Fitting the conditions into this formula, P(A) = 1, P(A and B) I interpret as "exactly two heads".
I found P(A and B) using the complement:
1-3C1(1/2)^3= 5/8 ( 3C1(1/3)^3 represent exactly 1 tail.)
I divided 5/8 by 1, but the answers don't match. ;(
As you said $P(A \cap B)=P(A)\cdot P(B|A)$.
And therefore $P(B|A)=\frac{P(A \cap B)}{P(A)}$, where
$A$: At least one head appears.
$B$: Exactly two head appear.
Applying converse probability.
$P(A)=1-P(\overline A)=\text{1-Probability, that no head appears}=1-0.5^3=0.875$
And $A \cap B$ is the intersection of $A$ and $B$. This is just $B$.
$P(A\cap B)=P(B)= {3 \choose 2}\cdot 0.5^2\cdot 0.5^1=3\cdot 0.5^3=0.375$.
$P(B|A)=\frac{0.375}{0.875}=\frac{3}{7}$