According to the first law of thermodynamics,
∆U = q + W …(i)
Where,
∆U = change in internal energy
q = heat = 701 J (Heat is absorbed so, it is positive) (given)
W = work done = (-394 J) (Work is done by the system so, it is negative) given
Substituting the values in expression (i), we get
∆U = 701 + (-394)
∆U = 307 J
Hence, the change in internal energy for the given process is 307 J.