No question is silly, and welcome!
Anyway, if the 2007 model has this female connector, you should be able to connect any iPod or MP3 to it and have it play through the AUX. The only negative thing is: it will not charge the unit while you are driving, so for long trips in the Outback

you will need to have a means of charging it externally.
Mercedes' own iPod adaptor kit is brilliant, and gives charging of the iPod, steering wheel iPod control, but it is really expensive. We have it (my wife insisted, and she was right to do so) and love it.
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2008 Mercedes-Benz B 200

2005 smart fortwo cdi pulse cabriolet, loaded

1966 Peugeot 404 Coupé Injection
1989 Peugeot 405 DL, 366,000 km