Ok, let us put coordinates on this system in order to solve it. (Things are much clearer with coordinates, which is probably one of the reasons why anti-SR crackpots tend to dislike them)
In the rest frame of C, let us put the event where A, B, and C are all at the same place at the origin of the coordinate system. Let the coordinate axes x, y, and z be right, up, and out of the page respectively, and let t be the coordinate time.
The worldlines of A and B are given parametrically by (being sloppy and parametrizing by t):
A: (t, 0, 0.7ct, 0)
B: (t, 0.7ct, 0, 0)
Letting t', x', y', and z' be the coordinates in A's reference frame, the Lorentz transform from C's frame to A's frame gives the relations:
x' = x
y' = γ(y - 0.7ct)
z' = z
t' = γ(t - 0.7y/c)
where γ := 1/√(1-0.72) = 1/√0.51
So, the worldlines are given parametrically in A's frame by (yes, I mean to parametrize by t and not t'):
A: (γ(t - 0.7 (0.7ct)/c), 0, γ(0.7ct - 0.7ct), 0)
A: (γ 0.51 t, 0, 0, 0)
B: (γ(t - 0.7 0/c), 0.7ct, γ(0-0.7ct), 0)
B: (γt, 0.7ct, -γ0.7ct, 0)
(I only did A as a sanity check)
So, we have that the coordinate velocity of B in A's frame is given by
v = (0.7c √0.51, -0.7c, 0)
So, unless I've made a mistake along the way, B's speed relative to A is 0.7 c √1.51.
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