The correct option is B 1.25
Let the initial fringe width be β and the new fringe width when the entire apparatus is immersed in liquid =β′
Given, β′=80β100=4β5 ...(1)
As, β=λDd
And, β′=λ′Dd=λμDd ...(2)
From (1) and (2),
⇒λμDd=45β=45λDd
⇒1μ=45
∴μ=54=1.25
Hence, option (B) is correct.