The difference quotient can be found by the formula:

Where h is not 0, because it would be a division by 0.
In this case, we have the function:

Then using the forumla:

The next step is to solve the binomial squared, and do a distributive property.
We can solve the squared binomial using:

Then:

Here we can see that there are several terms equal but with different sign. We can cancel out the terms x², 7x and 1

Now we can factor out the h in the numerator:

Which cancels out with the denominator, and we get:

And that's the result of the problem.