Carlos made an error in the step where he added \(-\frac{1}{8}\) and \(\frac{5}{2}\).
To clarify, let's look at that calculation:
\[ -\frac{1}{8} + \frac{5}{2} = -\frac{1}{8} + \frac{20}{8} = \frac{19}{8} \]
However, Carlos incorrectly stated that the result of that addition was \(\frac{21}{8}\).
Therefore, the correct answer is:
He incorrectly added \(-\frac{1}{8}\) and \(\frac{5}{2}\).