The efficiency of a Carnot engine is given by:
\[
\eta = 1 - \frac{T_C}{T_H}
\]
Given that \( T_H = 1.25 T_C \), we substitute:
\[
\eta = 1 - \frac{T_C}{1.25T_C}
\]
\[
= 1 - \frac{1}{1.25} = 1 - 0.8 = 0.2
\]
\[
= 20\%
\]
Thus, the efficiency of the engine is 20\%.