How can you power two 3.5V LEDs in series (7V) with only 5V from a 7805?
I didn't check the datasheet, but a 3.5V LED could be 3.0V, 3,5V or 4.0V. Some of them are 3.5V.
Its absolute max current is probably 350mA. Do you want to operate it at its limit?
You need two current regulators set to...