To solve this problem, we will first simplify the expressions inside the parentheses and then proceed with the subtraction.

4 5/16 + 1 1/4
= (4 + 1) + (5/16 + 1/4)
= 5 + (5/16 + 4/16)
= 5 + 9/16
= 5 9/16

Now, we subtract this sum from 3 1/8:

3 1/8 - 5 9/16

To do this, we need to make the denominators of both fractions the same. The Least Common Denominator (LCD) is 16.

Convert 3 1/8 to have a denominator of 16:
= 3 2/2 + 1 2/2 + 0/8
= 6/16 + 2/16
= 8/16

Now, subtract:
8/16 - 9/16
= -1/16

Therefore, the final answer is:

3 1/8 - (4 5/16 + 1 1/4) = -1/16