upgrading from 7.0.1 to latest version

I am running 7.0.1 version and I don't have any custom modification within php code or any add ons.

In this instance, if I install the newest 7.0.5 version and then import the database data from 7.0.1 - would the new version work all right?

Or do I need to upgrade from 7.0.1 to 7.0.2, then 7.0.3 and so on to retain functionality and my current data in database?

7.0.1 and 7.0.4 have many differences between DB  too. I Suggest you wait before 7.0.5 is coming. Than make fresh install of dolphin and will try export all of your modifications there