For addition or subtraction operations, we must first round off the values of significant figures in order to make them to the same number of decimal places:
Let's round 4.21 to 4.2.
Now we do the operation:
5.4 - 4.2 = 1.2
After the calculations, we choose as a reference the number with the fewest decimal places. For subtraction operations, we must follow the same reasoning as for addition.
Answer: 1.2