Step 1: Plan:
Use energy conservation between the release point and the $x = 5$ cm point.
Step 2: Steps:
Energy at release: $\frac12k(0.1)^2 = 0.005k$. At $x = 5$ cm: $0.25 + \frac12k(0.05)^2 = 0.25 + 0.00125k$.
Equate: $0.005k - 0.00125k = 0.25$, so $0.00375k = 0.25$ and $k = 66.7$ N/m, about $67$ N/m.
Final Answer:
The spring constant is about $67$ N/m, option (C).
\[ \boxed{67\ \text{N/m}} \]