it has been scaled down(shrunk) - so to me that should mean that it would be even less chance of being so ragged. I wondered if it was somehow my screen - but i have a retina display with high-resolution settings. To make sure that wasn't the case I sent it to my second computer (much lower res pc) and here is how it looks there -
Image was created using two circles & pathfinder tool + number 1 in a text box
Check the flattener preview. It seems that your vector image rasterized because have intersections with some effects/etc.
Does the same happen when you save the graphic as AI or PDF, and place it, rather than embedding? That's generally better practice.