Final answer:
Each ride at the state fair costs $2.50.
Step-by-step explanation:
To find how much each ride costs, we need to divide the total amount spent by the number of rides bought. In this case, Pete spent $17.50 on 7 rides. So, $17.50 divided by 7 is $2.50. Therefore, each ride cost $2.50. Therefore, the correct answer is (b) $2.50.