Help please?

Where it says "Net calories consumed = 309", you should be aiming to get that number to 1966 (that's MFP's recommendation for you anyway).

Your deficit shouldn't be taken form your BMR (which is how many calories you would be burning lying in bed all day) but from your TDEE (total daily energy expenditure). The way MFP does it is to not include calories from planned workouts, but just form your normal daily movements. This still ends up a larger number than your BMR. Then, any additional planned workouts, you log and eat back those calories* to get you to the original goal that MFP set you, with its built in deficit. See also this: http://www.myfitnesspal.com/topics/show/818082-exercise-calories-again-wtf

Yes, a deficit of 1731 is too much, but actually your deficit (if everything you've said is accurate) is bigger than that because you are more active than your BMR. Bottom line, you need to eat a lot more than 935 calories a day, regardless of how much exercise you're doing. Don't do a crazily low calorie diet and burn out within a week.

*Just be aware that exercise burns can be over-estimated and a lot of people like to only eat back say 2/3 of their exercise calories to allow for error.