Michael Kay answered this question here :
There is no such function.
How interesting, what a precedent?
I think that the only reasons for this are not (a) the lack of a precedent, and (b) the difficulty in detailing its indication: what do you do for the example with percent signs that are not followed by two hexadecimal digits.
(b) it seems simple enough to solve: either they say that the behavior is implementation dependent, or they say that the processor will cause a runtime error. But maybe there is more to this issue than I know.
Update: This subsequent post (in the same thread as above) shows the XSLT implementation of a function for decoding percent encoding (unconditionally).
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