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Technically you don't need to use long division to answer that question, but the math you could use instead is beyond the scope of the test.
I've probably seen about 10,000 official GMAT Quant questions by now, and I've used long division on exactly one of them. Even then, it was optional (it was to compute the decimal of 5/27, which you can find by dividing the decimal of 5/9 = 0.5555..... by three). I wouldn't say it's absolutely impossible that you might need to convert 3/7 to decimal on the GMAT, but it seems extremely unlikely to me. It's not the type of thing the GMAT typically tests.
There will, however, be occasional questions where you'd have the option to convert a fraction like 3/7 to decimal, but where a different method would let you avoid doing that.
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