In satellite communication, $RTT_{bit} = 4\; PD$ as both the frame and ACK must travel to Satellite and then back.
So, $RTT_{bit} = 4\; PD = 4 \times \dfrac{32604\times 10^3}{3 \times 10^8}=0.43472\;\text{sec}$
With $\text{GoBack-63},\; 63$ packets are sent. Transmission time for this, $T_t=\dfrac{\text{Frame Size}}{2 \times 10^6}$
For $35\%$ channel utilization we need,
$\qquad \dfrac{63 \times T_t}{T_t+0.43472} \geq 0.35$
$\qquad \implies 62.65 \times T_t \geq 0.152152$
$\qquad \implies \dfrac{62.65 \times \text{Frame Size}}{2 \times 10^6} \geq 0.152152$
$\qquad \implies \text{Frame Size} \geq 4.85\;\text{kb} = 607.15 \; \text{bytes}.$