When talking about emulators, a .7z file contains several ROMs of the same game, but they're all different. For example, if the ROM you have downloaded is Super Mario 64 as .7z, you can find that game in its japanese, america, european versions including alphas, betas and sometimes, hacks. In other words, every possible dumps of the same game.
What you can do is to pick (extract) the version of your preference, but make sure it ends with [!] which means it's a good dump. Some game versions may not work on Project64, so I recommend you to play the american versions of the game. The ROM format should be name of ROM + (U) [!] + .extension.
To save some space on disk, you can recompress your extracted ROM as .zip.