1. Increase by 25%:
If the original price is 100, a 25% increase would make it 100 + (25% of 100) = 100 + 25 = 125.
2. Decrease by 20%:
After the 25% increase, the price is 125, and a 20% decrease would make it 125 - (20% of 125) = 125 - 25 = 100.
So, the final price is 100% of the original price.
The answer is (C) 100%.