1 leftover pencil. This is because if you share 37 pencils with 9 people, each person will get 4 pencils because 9 times 4 is 36. Then there is 1 left over.
you divide 37 by 9 ( 37 ÷ 9) or you can count by 9's (9 18 27 36 45). 37 ÷ 9 = 4.1 the 1 is the remainder so there's only one pencil left or you can see the closest number is 36 so 37 - 36 = 1