Derivatives- Forwards understand, exchange, solution, example, volume

LorrinCFA

CFAI volume 6 derivatives pg 42 example 5, solution to A, I don't understand what that first step involves. Do we have the PV of $1.76 or $1.6573 and then turn that into pounds at what exchange rate? Why 1/1.062? I understand that we are going long the pound.

Thanks,
Andrew