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\begin{array}{l}\phantom{100)}\phantom{1}\\100\overline{)701}\\\end{array}
Use the 1^{st} digit 7 from dividend 701
\begin{array}{l}\phantom{100)}0\phantom{2}\\100\overline{)701}\\\end{array}
Since 7 is less than 100, use the next digit 0 from dividend 701 and add 0 to the quotient
\begin{array}{l}\phantom{100)}0\phantom{3}\\100\overline{)701}\\\end{array}
Use the 2^{nd} digit 0 from dividend 701
\begin{array}{l}\phantom{100)}00\phantom{4}\\100\overline{)701}\\\end{array}
Since 70 is less than 100, use the next digit 1 from dividend 701 and add 0 to the quotient
\begin{array}{l}\phantom{100)}00\phantom{5}\\100\overline{)701}\\\end{array}
Use the 3^{rd} digit 1 from dividend 701
\begin{array}{l}\phantom{100)}007\phantom{6}\\100\overline{)701}\\\phantom{100)}\underline{\phantom{}700\phantom{}}\\\phantom{100)99}1\\\end{array}
Find closest multiple of 100 to 701. We see that 7 \times 100 = 700 is the nearest. Now subtract 700 from 701 to get reminder 1. Add 7 to quotient.
\text{Quotient: }7 \text{Reminder: }1
Since 1 is less than 100, stop the division. The reminder is 1. The topmost line 007 is the quotient. Remove all zeros at the start of the quotient to get the actual quotient 7.