Similarly, the number of numbers divisible by $35$ from $1$ to $999$ is $\left[\frac{999}{35}\right]=28$, so the answer is $199+142-2\times28=285$. Also, you are to use $999$ and not $1000$ (owing to the "less than $1000$" in your question) for getting your sort of Venn diagram areas.
So, to put it exactly, it is
$$\left[\frac{999}{5}\right]+\left[\frac{999}{7}\right]-2\times\left[\frac{999}{35}\right]=285$$
Explanation to the Venn-diagram approach:
(i) There are $28$ numbers that are divisible by both $5$ and $35$(numbers divisible by $35$ are also divisible by $5$)
(ii) There are $28$ numbers that are divisible by both $7$ and $35$(numbers divisible by $35$ are also divisible by $7$)
These $28$ numbers each of which are being counted twice (once the first term and once in the second term) are to be removed from the enumeration.