Let rest two observations are x and y.
Given mean =4
⇒53+4+4+x+y=4⇒x+y=9...(1)
Given variance =5.2
⇒59+16+16+x2+y2−(4)2=5.2
⇒x2+y2=65...(2)
Squaring equation (1) and subtracting equation (2), we get
2xy=81−65⇒2xy=16⇒xy=8
∴(x−y)2=x2+y2−2xy=65−16=49
∴∣x−y∣=7