a) Performing the matrix multiplication:
\[ AB = \begin{bmatrix} 1 & 2 & 3 \\ 2 & -7 & 5 \\ -2 & -8 & 3 \end{bmatrix} \begin{bmatrix} 1 & 0 & 0 \\ 0 & 1 & 0 \\ 0 & 0 & 1 \end{bmatrix} = \begin{bmatrix} 1 & 2 & 3 \\ 2 & -7 & 5 \\ -2 & -8 & 3 \end{bmatrix} = A \]
Similarly, $BA = A$.
b) This demonstrates the key property of an identity matrix: it serves as the multiplicative identity. For any $n \times n$ matrix $A$, $AI_n = I_nA = A$.
c) Let $C = MI_n$. The element $c_{ij}$ in the $i$-th row and $j$-th column of $C$ is given by the dot product of the $i$-th row of $M$ and the $j$-th column of $I_n$.
\[ c_{ij} = \sum_{k=1}^n m_{ik} (I_n)_{kj} \]
The identity matrix $I_n$ has entries $(I_n)_{kj} = 1$ if $k=j$ and 0 if $k \neq j$. Therefore, in the summation, all terms are zero except for the one where $k=j$.
\[ c_{ij} = m_{i1}(0) + \dots + m_{ij}(1) + \dots + m_{in}(0) = m_{ij} \]
Since $c_{ij} = m_{ij}$ for all $i$ and $j$, the matrix $C$ is identical to the matrix $M$. Thus, $MI_n = M$.