Step 1: Use the escape speed
The kinetic energy $\frac{1}{2}mv^{2}=\frac{1}{2}\cdot\frac{GMm}{R}$ means $v^{2}=\frac{GM}{R}$.
Step 2: Use the height formula
For projection speed $v$, the height satisfies $\frac{1}{2}mv^{2}=GMm\left(\frac{1}{R}-\frac{1}{R+h}\right)$.
Step 3: Solve
$\frac{1}{2R}=\frac{1}{R}-\frac{1}{R+h}\Rightarrow\frac{1}{R+h}=\frac{1}{2R}$, so $h=R$, option (C).
Final Answer:
The maximum height reached is R.
\[ \boxed{\text{(C) }R} \]