To do the sum, first you add 3 and 8, which is 11, so you take the "1" and keep the "10" as a "1" to add in the next column
For the next column you add 4 and 2, which is 6, and the "1" from the other column: 6 + 1 + 7
The result is 71
So, yes, you regroup because you take a "1" form the first column and add it to the second column