Step 1: Understand what is being asked.
Two circles share centre $O$. The outer circle has radius 25 cm, and a chord $PQ=14$ cm of the outer circle touches the inner circle at $R$. We need the inner radius. Let us use the standard relation between a chord of a circle and its perpendicular distance from the centre, since the inner radius is exactly that perpendicular distance here.
Step 2: Recognise the inner radius as a distance from centre to chord.
Because $PQ$ is tangent to the inner circle at $R$, the segment $OR$ is perpendicular to $PQ$ (a tangent is always perpendicular to the radius at the point of contact). So $OR$ is nothing but the perpendicular distance of the centre $O$ from the chord $PQ$ of the outer circle. Call this distance $d$, so $r=d=OR$ is what we want.
Step 3: Apply the chord-distance formula.
For any chord of length $l$ in a circle of radius $R$, the perpendicular distance $d$ from the centre satisfies:
\[ d = \sqrt{R^2 - \left(\frac{l}{2}\right)^2} \]
Here $R=25$ cm (outer radius) and $l=14$ cm (chord length), so half the chord is 7 cm:
\[ d = \sqrt{25^2 - 7^2} = \sqrt{625-49} = \sqrt{576} \]
Step 4: Evaluate the square root.
\[ d = 24 \text{ cm} \]
Final Answer:
The radius of the inner circle is 24 cm, matching option (B).
\[ \boxed{24 \text{ cm}} \]