Test 700 is for DB2 UDB V8.1 Family Fundamentals. It primarily tests knowledge of SQL (DDL, DML and DCL), and also a basic understanding of the IBM DB2 product family for all platforms (Linux-UNIX-Windows, Mainframe, etc.). This includes knowing a little about the different distributions (Persoal Edition, WSE, ESE, DPF, etc) and the licensing issues. Having a basic understanding of DB2 Connect (how it is licensed, when it is needed, etc) is a also good idea.
This is fairly easy test that almost anyone can pass, even if you have limited experience with DB2 (but have good experience with other relational databases). The DBA test (701) is quite a bit tougher.