Villain is 35/20 2 AF with only 20 hands.
No history between us.

Villain could have a lot of made hands on the flop (i.e. QQ/JJ/TT/77,89,JT even T7) but also KQ, Q9, AK and maybe some 9x (if he is really loose).
What is the best play here? Call and see if he bluffs turn with his missed OESD? 3Bet flop?
Is folding flop any option?
I'm a bit lost here ...

No-Limit Hold'em, $0.50 BB (5 handed) - Hold'em Manager Converter Tool from FlopTurnRiver.com

Hero (UTG) ($60.87)
MP ($13.65)
Button ($9.75)
SB ($49.24)
BB ($89.47)

Preflop: Hero is UTG with A, A
Hero bets $1.50, 2 folds, SB calls $1.25, 1 fold

Flop: ($3.50) J, 10, 7 (2 players)
SB checks, Hero bets $2.50, SB raises $7, Hero ???