Step 1: Use the intersection condition:
Two lines through points $P_1(1,-1,1)$, $P_2(3,c,0)$ with directions $\vec d_1=(2,3,4)$, $\vec d_2=(1,2,1)$ intersect when $(\vec P_2-\vec P_1)\cdot(\vec d_1\times\vec d_2)=0$.
Step 2: Compute:
$\vec d_1\times\vec d_2=(3-8,\ 4-2,\ 4-3)=(-5,2,1)$. $\vec P_2-\vec P_1=(2,c+1,-1)$. Dot product: $-10+2(c+1)-1=0$, so $2c=9$ and $c=\dfrac92$.
Step 3: Radius:
$r^2=4+25-\dfrac92=\dfrac{49}{2}$, so $r=\dfrac{7}{\sqrt2}$. Option C.
Final Answer:
Intersection gives c = 9/2, so r squared is 49/2.
\[ \boxed{\text{(C) }\dfrac{7}{\sqrt2}} \]