Find closest multiple of $26$ to $97$. We see that $3 \times 26 = 78$ is the nearest. Now subtract $78$ from $97$ to get reminder $19$. Add $3$ to quotient.
Find closest multiple of $26$ to $196$. We see that $7 \times 26 = 182$ is the nearest. Now subtract $182$ from $196$ to get reminder $14$. Add $7$ to quotient.
Since $14$ is less than $26$, stop the division. The reminder is $14$. The topmost line $037$ is the quotient. Remove all zeros at the start of the quotient to get the actual quotient $37$.