Windows 7 will already have .NET framework installed. So as long as you are targeting framework version 2 or greater, you only need to install your application.
As other answers have mentioned Windows 7 comes with version 3.5 already installed.
It should also be noted that version 3.5 uses the CLR of version 2.0. Which means it's not a complete new framework, but just an extension of 2.0, and it can't run without it.
In addition, it installs .NET Framework 2.0 SP1, (installs .NET Framework 2.0 SP2 with 3.5 SP1) and .NET Framework 3.0 SP1 (installs .NET Framework 3.0 SP2 with 3.5 SP1).
This information came from wikipedia page