The correct answer is 7.1 because when we add 2 1/2 and -1 4/5, we first convert the mixed numbers to improper fractions. 2 1/2 becomes 5/2 and -1 4/5 becomes -9/5. Then, we find a common denominator, which is 10. We multiply the numerators by the same factor to get 25/10 and -18/10. Finally, we add the fractions together to get 7/10. Converting this to a decimal, we get 0.7, which is equivalent to 7/10. Therefore, the answer is 7.1.