If you want to approach directly using definitions...
It may help you to think instead of rearranging the letters in $\color{red}{RAC}E\color{blue}{CAR}$.
We have then your event $B$ corresponds to beginning with $ACE$ where $A$ and $C$ are of either color.
Since every letter in this rephrased problem are distinct, we can treat the sample space as being of size $7!$
To calculate $Pr(B)$, we first count $|B|$. Pick which color the leading $A$ is, pick which color the leading $C$ is. You are left with the remaining $A$ and $C$ as well as both $R$'s to arrange at the end. Dividing by the sample space size, we have then$Pr(B)=\frac{2\cdot 2\cdot 4!}{7!}=\frac{2}{105}$, not $\frac{1}{21}$ like you wrote in your attempt.
To calculate $Pr(A\cap B)$, we approach similarly. Pick the color of the leading $A$, pick the color of the leading $C$, pick the color of the final $R$. This leaves only three characters to arrange just before the end. We have then $Pr(A\cap B)=\frac{2\cdot 2\cdot 2\cdot 3!}{7!}=\frac{1}{105}$
We have then $Pr(A\cap B)/Pr(B)=(\frac{1}{105})/(\frac{2}{105})=\frac{1}{2}$
As you have not shared any of your calculations in how you arrived at the numbers you write, I cannot tell you why your calculations are incorrect.