I've done a quick test and the following seems to work for me...

exec master..xp_cmds hell 'C:\Progra~1\7-Zip\7z.exe e "D:\Microso ft SQL Server\MSSQL\Ba ckup\archive_da ta.7z" -o"D:\Microso ft SQL Server\MSSQL\Ba ckup\"'

The ‘e’ option tells 7Zip to do the extraction, the ‘–o’ option tells 7Zip where to put the extracted files, putting in an absolute path in seems to work for me, lemme know if...