It often helps to keep track of units. The "7" is "seven yards", and the "5/3" is "five-thirds yards per bear". In dividing the yards by the yards-per-bear, you are finding "how many bears". The remainder, the 1/5, is one-fifth bear.
If one bear needs 5/3 yards of fabric, and the left-over fabric is enough to make one-fifth of a bear, then how many yards of fabric are left?