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The first student took 1/4 bag.
1 bag minus 1/4 bag = 4/4-1/4 bag = 3/4 bag which was the remainder
The second student took 3/4 of that remainder of 3/4 bag,
and 3/4 of 3/4 bag is (3/4)×(3/4 bag) = 9/16 bag.
3/4 bag minus 9/16 bag = 3/4-9/16 bag = 12/16-9/16 bag = 3/16 bag.
Answer: 3/16 bag.
Checking by adding the fractions of a bag that each got:
1/4+9/16+3/16 bag = 4/16+9/16+3/16 bag = 16/16 = 1 bag
Edwin