The answer is 1 1/6 in lowest terms and in decimal form its 1.166667.
Here are the steps I used.
1. Change 3 1/2 to a improper fraction ( 3 * 2 + 1 over 2 * 1/3)
2. Simplify 3 x 2 to 6 ( 6 + 1 over 2 x 1/3)
3. Simplify 6 + 1 to 7 ( 7/2 x 1/3)
4. Multiply ( 7 x 1 over 2 x 3)
5. Simplify 7 x 1 to 7 ( 7 over 2 x 3)
6. Simplify 2 x 3 to 6 ( 7/6)
Lastly reduce it once more to lowest terms, therefore the answer is 1 1/6.