The correct first step in multiplying the decimals 3.125 and 2.64 is to convert each decimal into an improper fraction.
For 3.125, this decimal can be represented as an improper fraction:
[tex]\[ \frac{3125}{1000} \][/tex]
For 2.64, this decimal can be represented as an improper fraction:
[tex]\[ \frac{264}{100} \][/tex]
Therefore, the correct first step is:
[tex]\[ \frac{3125}{1000} \cdot \frac{264}{100} \][/tex]