Your actually getting the right price to call $35 to win $75 is more than 2:1 so I don't know why he questioned the call, but I do think that 3betting all-in would be a good play as well, although that is completely stack size dependent. I you both started out the hand with 100bbs then shipping is a good play. If you were deepstacked the calling the raise is fine when you factor in your implied odds
if he does have a 7. However I definately think you chased him away by leading out on the turn. He had the initiative and I'm sure that if you checked to him it would have been alot easier to stack him.