Right answer is (c) 1.25
The explanation: Pressure at a point P is equal to ρgh, where ρ is the density and h is the height of the liquid column. Therefore, ρwater * 1 * g = ρoil * h * g, where h is the pressure in terms of m of oil.
Thus, h = ρwater / ρoil = 1/0.8 = 1.25.