I don't really understand how the term "observe" differs from "see" as
they are both just acts of measuring the time on the clock in
question.
You're not the only one and understanding this difference is often crucial to truly understanding the results from Special Relativity (SR).
The essential difference is that an (inertial) observer in SR is non-local. Rather than think of an observer located at a particular point, think of an observer as the entire inertial reference frame that assigns to each event spacetime coordinates as determined by rods and clocks synchronized in that frame.
From the above linked Wikipedia article:
Physicists use the term "observer" as shorthand for a specific
reference frame from which a set of objects or events is being
measured.
Speaking of an observer in special relativity is not
specifically hypothesizing an individual person who is experiencing
events, but rather it is a particular mathematical context which
objects and events are to be evaluated from. The effects of special
relativity occur whether or not there is a sentient being within the
inertial reference frame to witness them.
In contrast, what a person (or camera) sees (or photographs) is an entirely different question. Here is a quote from a nice article on the difference.
Observation vs Photography
In Special Relativity there is a very
specific meaning to the word observer. An observer is one of an
infinite collection, in space and time, of robots whose sole task in
life is to record the time and location of each detected event. When
we say that an observation was made we simply mean that the space and
time coordinates of an event have been recorded.
A photograph is a record of all of the photons that were received at
the focal point of the camera at the time the photograph was taken.
These are fundamentally different processes and they give us very
different information about the universe.
So, to specifically address your example, part (b) asks for different information than part (a).
Part (a) asks about the information contained in the light arriving at your location from the distant clock when your local clock reads 12 noon.
To answer this, one must calculate the time of flight from there to here and subtract that from the local time.
A photograph of the event would show the local clock reading 12 noon and the distant clock reading 11:55 am.
However, part (b) asks what the distant clock reads there at the same instant as the local clock here reads at 12 noon.
Since, it is stipulated that the distant clock there is synchronized with the local clock here, the answer requires no calculation: 12 noon.
Heck, the formula for time dilation and length contraction are derived from the differing observed travel times of light from two observers.
– quarkleptonboson Dec 07 '14 at 09:44