Step 1: Define shrinkage factor.
Shrinkage factor = \(\frac{\text{Shrunk length}}{\text{Original length}}\).
Step 2: Substitution.
Original length = 10 cm, Shrunk length = 9.5 cm.
\[
\text{Shrinkage Factor} = \frac{9.5}{10} = 0.95
\]
Step 3: Conclusion.
The shrinkage factor is 0.95. The correct answer is (C).