The "units" place.
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It is simply 725.0 as a decimal number
725 as a decimal and fraction = 725.0 ; 725/1
725 / 1000 = 0.725
If the 3rd decimal place is 5 or more, increase the 2nd decimal place by 1, and discard everything after it. If the 3rd decimal place is less than 5, leave the 2nd decimal place alone, and discard everything after it.
When rounding 3.25 to 1 decimal place, you look at the second decimal place, which is 5. Since 5 is equal to or greater than 5, you round up the first decimal place. Therefore, 3.25 rounded to 1 decimal place is 3.3.