Explanation:

Let's break it down:

- The difference between compound interest (CI) and simple interest (SI) for 2 years at 5% is given.

- Formula for difference after 2 years:

Difference = P × (R/100)²

Here, P is principal, R is rate.

Given: Difference = Rs. 25.50, Rate = 5%

Let’s plug in the values:

Difference = P × (5/100)²

So: 25.50 = P × (25/10,000)

25.50 = P × 0.0025

P = 25.50 / 0.0025

P = 10,200

Now, let's look at your options:

- Rs. 12,000 – Not matching.

- Rs. 10,200 – This matches

- Rs. 13,000 – Nope.

- Rs. 10,000 – Close, but not it.

- Rs. 15,000 – Way off.

So the correct answer is Option 2: Rs. 10,200.