Think of 3.97 as 397. How would you get from 3.97 to 397? Multiply by 100. Alternatively, 397/100 = 3.97.
So, you now have 397/100.
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In this case, notice that 397/100 is 3.97. If you separate the 3, you get 97/100 which is 0.97 and 3 + 0.97 = 3.97. So, $$\mathbf{3\frac{97}{100}}$$ is your answer.