Most programs, including Word, do not decode the math to the screen, but instead rely upon a low-resolution 'preview' of the image. EPS is a vector format, meaning that a graphic file consists of many separate 'objects' that are mathematically defined. First of all, you may want to strongly consider not using EPS for your high-resolution graphics that will end up in a Word document. Nina wonders what the best way is to embed a high-resolution graphic in her letterhead so that it appears with the crispness and clarity she expects.
The resulting graphic looks terrible in Word the text in graphic format doesn't appear as crisp or sharp as the original text version of the address. Word automatically fits the image to the available space, which means it is resized to 11% of its original. This makes the original size of the graphic (according to Word) huge, something like 69 inches. When she did that, however, the EPS file is treated in Word as if it is 72 dpi. She saved the text portion out as an EPS vector file, thinking this would provide the best resolution when she inserted the graphic into Word.
Nina is creating a letterhead, and she wants to use a graphic for the address portion of the letterhead.