Step 1: Understanding the Concept:
Inside a solenoid with a core, \(B = \mu_0\mu_rnI\), where \(n\) is turns per metre. Flux \(\Phi = BA\).
Step 2: Find B and n:
\(A = 2\) cm\(^2 = 2\times10^{-4}\) m\(^2\). \(B = \frac{\Phi}{A} = \frac{4\pi\times10^{-6}}{2\times10^{-4}} = 2\pi\times10^{-2}\) T.
\(n = \frac{400}{0.4} = 1000\) turns/m.
Step 3: Solve:
\(\mu_0nI = 4\pi\times10^{-7}\times1000\times0.4 = 1.6\pi\times10^{-4}\) T.
\[ \mu_r = \frac{2\pi\times10^{-2}}{1.6\pi\times10^{-4}} = 125 \]
Final Answer:
The relative permeability of the rod is \(125\), option (C).
\[ \boxed{125} \]