Step 1: Relation between LCM and HCF
For two numbers $a$ and $b$:
\[
LCM(a, b) \times HCF(a, b) = a \times b
\]
Step 2: Apply the formula
Here $a = 35$, $b = 63$, and $LCM(35, 63) = 315$.
\[
HCF(35, 63) = \dfrac{a \times b}{LCM(a, b)}
\]
\[
HCF = \dfrac{35 \times 63}{315}
\]
\[
HCF = \dfrac{2205}{315} = 7
\]
Step 3: Conclusion
Thus, the $HCF(35, 63) = 7$.
The correct answer is option (B).