We report resistivity, magnetization, and optical spectroscopy study on single-crystal sample of Sr3(Ru0.985Fe0.015 )2O7. An upturn is observed in resistivity at about 30 K. Below 30 K, the dip in resistivity R(ω), the suppression in scattering rate 1/τ (ω), the peaklike feature in optical conductivity σ1(ω), and the remainder of spectral weight all suggest the formation of a pseudogap....