Just in case some readers might find some of the solutions misleading: the several solutions here that rely on units digits are not correct. We're dividing by 8, and from a units digit alone, you cannot predict what remainder you will get when you divide by 8. It's true that the units digit of 7^10 is 9, but if you think of what remainders you get when you divide 9, 19, 29, and 39 by 8, you can see you can get any odd remainder at all (from 1 through 7). Units digits would be relevant if we were dividing by 10, but we aren't doing that here. The solutions which investigate the remainders pattern that you get when you divide successive powers of 7 by 8 are all good solutions, as are the ones that rely on modular arithmetic (which you don't really need on the GMAT, but which is used in some of the fastest solutions above).
I'd add that the question itself doesn't make any sense. Assuming we're dividing 7^10 by 8 (something the question doesn't even actually say), there is no "minimum possible value" of the remainder n; n has a single well-defined value. We aren't minimizing anything here.