To find out how much of the pencil has been used, we can subtract the final length from the initial length.
The initial length of the pencil is 6 1/2 inches and the final length is 5 1/4 inches.
To subtract fractions, we need to make sure the denominators are the same. Let's convert both fractions to have a denominator of 4:
6 1/2 inches = 6 2/4 inches
5 1/4 inches = 5 1/4 inches
Now we can subtract:
6 2/4 inches - 5 1/4 inches = 1 1/4 inches
So, approximately 1 1/4 inches of the pencil has been used.