I will guess that the last part of the exercise asked "and how much material will be left over?"

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?