Let $X$ be a binomial random variable representing the number of Heads in $n = 4$ independent fair coin tosses, where the probability of success (getting a head) is $p = \frac{1}{2}$ and failure is $q = \frac{1}{2}$.
The condition "at least one head and at least one tail" means the number of heads must satisfy $1 \le X \le 3$.
Using the complement rule:
$$P(1 \le X \le 3) = 1 - [P(X = 0) + P(X = 4)]$$
Using the Binomial PMF $P(X = k) = \binom{n}{k} p^k q^{n-k}$:
- For 0 heads (All tails): $P(X = 0) = \binom{4}{0} \left(\frac{1}{2}\right)^4 = \frac{1}{16}$
- For 4 heads (All heads): $P(X = 4) = \binom{4}{4} \left(\frac{1}{2}\right)^4 = \frac{1}{16}$
Substituting these back into the complement equation:
$$P(1 \le X \le 3) = 1 - \left( \frac{1}{16} + \frac{1}{16} \right) = 1 - \frac{2}{16} = \frac{14}{16} = \frac{7}{8}$$
Hence, option C is the correct answer.