Concept:
If the chain is longer than its nominal length, the measured distance is smaller than the actual distance.
The correction formula is
\[
\boxed{
L_c=L_m\left(\frac{l_a}{l_n}\right)
}
\]
where
\[
L_c=\text{Correct length},
\]
\[
L_m=\text{Measured length},
\]
\[
l_a=\text{Actual chain length},
\]
\[
l_n=\text{Nominal chain length}.
\]
Step 1: Write the given data.
Measured length,
\[
L_m=85\text{ m}
\]
Nominal chain length,
\[
l_n=20\text{ m}
\]
Actual chain length,
\[
l_a=20+0.1=20.1\text{ m}
\]
Step 2: Calculate the correct length.
\[
L_c
=
85\left(\frac{20.1}{20}\right)
=
85(1.005)
=
87075\text{ m}
\]
Therefore,
\[
\boxed{L_c\approx87\text{ m}}
\]
Hence, the correct option is
\[
\boxed{(A)\;87\text{ m}.}
\]