Step 1: Calculate the discount.
The discount is 20% of ₹1,250.
\[
\text{Discount} = \frac{20}{100} \times 1250 = 250
\]
Step 2: Subtract the discount from the original price.
\[
\text{Selling price} = 1250 - 250 = 1000
\]
Step 3: Conclusion.
The selling price after the discount is ₹1,000, so the correct answer is (A) ₹1,000.