One man must arrive before the other. The probability that man 1 arrives during the first $\frac34$ hour is $\frac34$. He'll then wait $\frac14$ hour.
The probability that he arrives during the last $\frac14$ hour is $\frac14$, and then (on average he'll wait) $\frac18$ hour.
So altogether the man 1 will wait $\frac34 × \frac14 + \frac14 × \frac18 = \frac7{32}$.
So the probability that man 2 arrives while the man 1 is waiting is $\frac7{32}$. Similarly if man 2 arrives before man 1. SO altogether, the probability of them meeting is $\frac7{32} + \frac7{32} = \frac7{16}$