As mentioned in the question , the gadget will be defective if even one component is not working properly so its complementary event would be that the gadget is not defective , meaning that all components are working fine.Hence ,
P(defective) = 1 - P(not defective)
= 1 - P(all components are fine)
So for all components are fine , we have to use multiplication principle , since here choice is not there and each of the components have to be fine and taken into consideration.
Hence p(not defective) = (1 - 0.04)2 * (1 - 0.03)3 = 0.841(Since there are 2 balls of type having failure of each = 0.04 and 3 balls of type 2 having failure of each = 0.03)
Hence p(defective) = 1 - 0.841 = 0.159 = 0.16(approx)