Step 1: Complex conjugate root theorem.
Since the polynomial has real coefficients, if $1+2i$ is a root, $1-2i$ is also a root.
Step 2: Form quadratic factor.
\[
(x-(1+2i))(x-(1-2i)) = (x-1)^2 + 4 = x^2 - 2x + 5.
\]
Step 3: Divide original polynomial.
\[
x^4 - 3x^3 + 8x^2 - 7x +5 \div (x^2-2x+5) = x^2 - x +1.
\]
Step 4: Find other roots.
Solve $x^2 - x +1 = 0$ to get $r_3$ and $r_4$.
Step 5: Sum of squares of other roots.
\[
r_3^2 + r_4^2 = (r_3+r_4)^2 - 2r_3r_4 = 1^2 - 2(1) = -1.
\]
Step 6: Note on answer key.
The calculation gives $-1$, but the answer key lists $-4-4i$. Likely a typographical error in the original question.