Hi,
Is MIPSDK2016R3 compatible with XProtect 7.0?
Yes.
But if you want to start developing something I recommend that you use the newest MIP SDK which right now is MIP SDK 2017 R2.
See also - https://force.milestonesys.com/support/articles/en_US/FAQ/about-MIP-SDK-compatibility-with-XProtect-product-versions