The same problem can be solved using fractions instead of decimals, which avoids any rounding along the way.
A 20% decrease means boys this year are $\dfrac{4}{5}$ of last year's count: boys this year $= \dfrac{4}{5} \times 610 = 488$.
Girls are 175% of this year's boys, and $175\% = \dfrac{7}{4}$, so girls $= \dfrac{7}{4} \times 488$.
$\dfrac{7 \times 488}{4} = \dfrac{3416}{4} = 854$.
So there are 854 girls in the school, matching option A.
\[\boxed{854}\]