Step 1: Apply the fan affinity law.
For a centrifugal fan,
\[
Q\propto N,
\]
where \(Q\) is the air quantity and \(N\) is the rotational speed.
Step 2: Calculate the new discharge.
Given,
\[
Q_1=70~\mathrm{m^3/s},
\quad
N_1=500~\mathrm{rpm},
\quad
N_2=200~\mathrm{rpm}.
\]
Hence,
\[
Q_2
=
Q_1\frac{N_2}{N_1}
=
70\left(\frac{200}{500}\right)
=
70\times0.4
=
28~\mathrm{m^3/s}.
\]
Thus,
\[
\boxed{28~\mathrm{m^3/s}}
\]
is the correct answer.
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.