The answer is √58 = 7.62
So, if you draw this down, you will see that the direct distance is hypotenuse c of a right triangle which sides are 3 blocks (1 south and 2 north) and 7 blocks (4 west and 3 east).
Use the Pythagorean theorem:
c² = a² + b²
a = 3
b = 7
c² = 3² + 7²
c² = 9 + 49
c² = 58
c = √58
c = 7.62
