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\begin{array}{l}\phantom{100)}\phantom{1}\\100\overline{)263}\\\end{array}
Use the 1^{st} digit 2 from dividend 263
\begin{array}{l}\phantom{100)}0\phantom{2}\\100\overline{)263}\\\end{array}
Since 2 is less than 100, use the next digit 6 from dividend 263 and add 0 to the quotient
\begin{array}{l}\phantom{100)}0\phantom{3}\\100\overline{)263}\\\end{array}
Use the 2^{nd} digit 6 from dividend 263
\begin{array}{l}\phantom{100)}00\phantom{4}\\100\overline{)263}\\\end{array}
Since 26 is less than 100, use the next digit 3 from dividend 263 and add 0 to the quotient
\begin{array}{l}\phantom{100)}00\phantom{5}\\100\overline{)263}\\\end{array}
Use the 3^{rd} digit 3 from dividend 263
\begin{array}{l}\phantom{100)}002\phantom{6}\\100\overline{)263}\\\phantom{100)}\underline{\phantom{}200\phantom{}}\\\phantom{100)9}63\\\end{array}
Find closest multiple of 100 to 263. We see that 2 \times 100 = 200 is the nearest. Now subtract 200 from 263 to get reminder 63. Add 2 to quotient.
\text{Quotient: }2 \text{Reminder: }63
Since 63 is less than 100, stop the division. The reminder is 63. The topmost line 002 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 2.