Step 1: Organize the data in increasing order.
The given values are:
\[ x + 4, x + 3.5, x + 2.5, x - 3, x - 2, x + 0.5, x - 0.5, x + 5 \]
Arranging these values in increasing order:
\[ x - 3, x - 2, x - 0.5, x + 0.5, x + 2.5, x + 3.5, x + 4, x + 5 \]
Step 2: Find the median.
Since there are 8 values (even number of values), the median is the average of the 4th and 5th values in the ordered list.
The 4th value is \( x + 0.5 \) and the 5th value is \( x + 2.5 \).
The median is given by the average of these two values:
\[
{Median} = \frac{(x + 0.5) + (x + 2.5)}{2} = \frac{2x + 3}{2} = x + 1.25
\]
Step 3: Conclusion.
Thus, the median is \( x + 1.25 \), corresponding to option (4).