The idea of Public Key Cryptography is to send messages in such a
way that only the person who receives the messages can understand
them. Even if everyone knows the method of encryption nobody
except the receiver has all the information needed in order to
decypher the message. To solve this problem you are in the
position of Bob receiving a secret number from Alice who has sent
him the coded message 180. Bob is the only person in the world
who knows that he has to use 59 in order to find the secret
number $M$ which Alice has sent to him, and which he knows to be
between 0 and 390.
Bob has to find the number equivalent to $180^{59}\pmod {391}$ so
can you do this for him?
NOTES AND BACKGROUND
So that you can decipher the secret number using only a
calculator the example given involves only small numbers like
59 and 391 whereas very big numbers are involved when the
method is used in the real world. Instead of 391, the product
of two very large prime numbers would be used in real world
applications of this method. The reason that Bob, and nobody
else, knows to use the number 59 to decode the message is that
it is derived from one of the factors of 391 and in real world
applications it is impossible to find the factors of the very
large numbers that are used.
The article '
Public Key
Cryptography ' gives a detailed explanation of how the
method works and gives you help in working with modulus
arithmetic.
This wikipedia page might also be of interest
http://en.wikipedia.org/wiki/Cobalt-59