Step 1: Understanding the Concept
If the lift accelerates downward with \(a\lt g\), the floor still pushes the block (normal force \(N=m(g-a)>0\)), so the block moves with the lift.
Step 2: Calculation
Starting from rest, \(s=\frac{1}{2}at^{2}=\frac{1}{2}\times 5\times(0.2)^{2}=0.1\ \text{m}\).
Step 3: Compare the options
\(0.1\ \text{m}=10\ \text{cm}\), which matches the third option.
Final Answer:
The block is displaced by \(10\ \text{cm}\) in the first \(0.2\ \text{s}\).
\[ \boxed{\text{(C) }10\ \text{cm}} \]