In a Sudoku block, if any cell has an identified value, then no other cells in that block can have these values as their possibility.The unsolved cells in the block get reduced with the possible values other than these identified values.
In the above block, since the values 8,5 and 7 are already present in the cells 1,3 and 6. No other cells in that block can have these values as their possibility.
Figure: A Row-Block from 9x9 sudoku.
Consecutive Sudoku Algorithms
Greater Sudoku Algorithms