Find closest multiple of $10$ to $35$. We see that $3 \times 10 = 30$ is the nearest. Now subtract $30$ from $35$ to get reminder $5$. Add $3$ to quotient.
Since $5$ is less than $10$, stop the division. The reminder is $5$. The topmost line $03$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $3$.