At 37 weeks baby.is considered full term. Her lungs will be fine.
But why are they inducing?
If you don't feel comfortable don't do it. Yes babies lungs are developed enough for life outside but doesn't mean they couldn't do some improving 7lbs 7oz isn't a huge baby. My first born was 7lbs 13oz and I did just fine with him and he was born at 39weeks vaginally. But ultimately this is just an opinion and your dr usually knows best but I wouldn't say 7lbs 7oz is a good reason to induce.
I had my son at 37 weeks he was just ready to come n he was just fine
7 lbs isn't a big baby if that's the only reason they are inducing maybe you should just wait. I was 40+2 when I had my daughter and they estimated her at 8 lbs 10 oz and she was only 7 lbs 6oz when she was born.
My baby was 8 lbs 2 oz and she ripped me a new one lol yes your girls lungs will be fine!