So I am taking a class where we are working on a cryptography section. Basically, the course says that: $$\frac 1 3 \mod(3016) = 2011$$ or when run through Python - modified with SciPi: $$\frac 1 3 \,\%\, 3016 = 2011$$
I don't understand how or why this happens. Does anyone know why the modulo division would produce this result?
One can in fact use fractions in modular arithmetic, as long as one only uses fractions with denominator coprime to the modulus. For these fractions the usual grade school arithmetic of fractions holds true. For example, let's consider your problem.
$\quad {\rm mod}\ 3n\!+\!1\!:\,\ 3n\!+\!1\equiv 0\ $ so $\ 1 \equiv 3(-n)\ $ therefore $\ \dfrac{1}3 \equiv -n \equiv 2n\!+\!1.\ $
$\quad$ In your case $\ 3n\!+\!1 = 3016\,$ so $\,n=\dfrac{3015}3 = 1005,\,$ so $\,\dfrac{1}3\equiv 2n\!+\!1 = 2011$
The notation $\,1/3\,$ means $\,3^{-1},\,$ i.e. a root of $\,3x\equiv 1\pmod{3n\!+\!1}.\,$ The inverse exists and is unique because $\,\gcd(3,3n\!+\!1)=\gcd(3,1)=1,\,$ so by Bezout's identity for the gcd we have
$\quad \text{for some } j,k\!:\ \ 3j+(3n\!+\!1)k = 1\ \Rightarrow\ {\rm mod}\ 3n\!+\!1\!:\ 3j\equiv 1\ \ {\rm so}\ \ j\equiv 3^{-1}\! \equiv 1/3$
and inverses are always unique. Hence the notation $\,1/3\, :=\, 3^{-1}\,$ is well-defined.
Remark $\ $ Generally we can use the extended Euclidean algorithm to compute modular inverses. The above is essentially an optimization for the case when it terminates in a single step, i.e. inverting $\,a\,$ modulo $\,m = an+1,\,$ i.e. when $\,a\mid m-1.$