Step 1: Determine the shaft dimensions.
Outer diameter,
\[
D=100\,\mathrm{mm}
\]
Wall thickness,
\[
t=25\,\mathrm{mm}
\]
Inner diameter,
\[
d=D-2t=100-50=50\,\mathrm{mm}.
\]
Step 2: Use the torsion equation.
\[
T=\frac{\pi}{16}\,
\tau\,
\frac{D^4-d^4}{D},
\]
where
\[
\tau=125\,\mathrm{MPa}.
\]
Substituting the values,
\[
T
=
\frac{\pi}{16}(125)
\frac{100^4-50^4}{100}
\approx
23\times10^6\,\mathrm{N\,mm}
=
23\,\mathrm{kN\!-\!m}.
\]
Hence,
\[
\boxed{23\,\mathrm{kN\!-\!m}}
\]
is the correct answer.
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.