In order to solve this problem, we first find what time it is now. The hour hand is just past the 9, and the minute hand is pointing at the 1. In order to put this into a time, we multiply the minutes by 5 and add it to the hour. This means she got to work at 9:05.
To finish this problem, we subtract 25 minutes from 9:05. This is equal to 8:40, so she left her house at 8:40 A.M., which means the answer is D.