Class 7Q3 at Sweyne Park School explained clearly how they solved this problem:
First of all we know it must be an odd number of lollies because there is one left over when they share by two.It is very helpful to see how your thinking developed as you tackled this problem - thank you Class 7Q3. Poppy from Steeple Morden Primary wrote:
Thank you Poppy. I like the way you have thought about the practical side of the problem at the end and have decided how many lollies the children are likely to have had. Phoebe and Alice from Cambridge used a 100 square to help solve the problem. Here is Alice's square:

And here is Phoebe's:

You can see that they have shaded all the odd numbers in brown and put a green cross through all the numbers that have 2 left over when shared between 5. They conclude that the number of lollies in the bag could be:
Well done both of you - you have shown how the number square is a very useful tool.