The question asking for the lessor's "finance income" implies that this is a "capital lease", an implication supported by the fact that the asset will have ≈ zero value at the end of the lease term.
This means that the lessor has, in theory, actually sold the asset to the lessee. You view it as a sale, with the lessee giving an interest-bearing installment note to the lessor for the full purchase price.
The terms of this note call for 7 annual payments of 3,574 each, with the first being due immediately; the other six due in one-year intervals. (Equivalently you could view it as the lessee making a 3,574 down payment and giving a note calling for 6 annual payments of 3,574 beginning one year hence.)
First you need to use the given internal interest (discount) rate to determine the present value of this installment note. This amount will also be the deemed selling price of the asset.
Next set up an amortization schedule for this note, using the present value you've just determined as the initial amount of the note.
Then from this amortization schedule you can see the amount of interest income earned by the lessor during each of the six periods.
Finally, allocate the interest income of the 6 lease periods to the lessor's income statements in a pro-rata manner, noting that the lease periods run Mar 31 - Mar 31 whereas the lessor's fiscal year ends each Sep 30.