We have seen great progress in basic perceptual tasks such as object recognition and detection. However, AI models still fail to match humans in high-level vision tasks due to the lack of capacities for deeper reasoning. Recently the new task of visual question answering (QA) has been proposed to evaluate a model's capacity for deep image understanding. Previous works have established a loose, global association between QA sentences and images. However, many questions and answers, in practice, relate to local regions in the images. We establish a semantic link between textual descriptions and image regions by object-level grounding. It enables a new type of QA with visual answers, in addition to textual answers used in previous work. We study the visual QA tasks in a grounded setting with a large collection of 7W multiple-choice QA pairs. Furthermore, we evaluate human performance and several baseline models on the QA tasks. Finally, we propose a novel LSTM model with spatial attention to tackle the 7W QA tasks.