|Any Three Characters||--||3||1||Mega-Potion x1|
This battle is actually required for the Main Scenario and as a result, there's only one round to contend with and it shouldn't be too difficult at this stage of the game. Still, to make life easier on yourself, slot Elemental-Lightning on Cloud (and Barret or Tifa if you have a second one). Outside of that, be sure you have Healing and Revival materia slotted should you need them, you can't use items here just like in the Colosseum.
You're up against two Cutters at the same time here which can prove to be a little chaotic to begin with. As with most Sweeper type enemies though, Lightning based attacks are your friend and casts of Thundara(ga) will make short work of this scrap metal. Beware of the Cutter's ability to Silence your characters with its Smog, otherwise, this battle should be a formality at this point in the game.
Tip: This is a useful battle to repeat in Chapter Select with the increased AP and EXP that it offers. You can select the difficulty to easy, pop on Magnify-Lightning on Aerith and use Thundaga to win the battle in around 7-10 seconds and score bundles of AP to go with it. What's more, you can repeat the battle without having to leave the Simulator.