(b) As the water level rises in one arm; it falls in another arm by 25 m. Equating the pressure at depth 50 cm down in arm of water with other due to liquid, we have $h \times 0.8 \times g = 50 \times 1 \times g$
Or $h = 50/0.8 = 62.5$ cm
Height of oil in one limb above the water in another limb
$= 62.5 - 50 = 12.5\ cm$