Here the typesetter for the 1841 British edition set we rather than the correct he. There is nothing written in the first person for the larger passage that could have prompted this typo. Don Brugger suggests (personal communication) that the w of the immediately preceding when could have influenced the typo. Of course, the error does represent the general carelessness in the 1841 typesetting. What is even more surprising here is that both the 1849 and 1852 LDS editions continued with this egregious typo. Finally, in 1879 the error was corrected in the LDS text. The 1841 typesetter made the same typo in Jacob 3:1, but there the subsequent 1849 LDS edition did not copy it (see under that passage).
Summary: Maintain the pronoun he in Ether 7:5.