Step 1: Write the expression for static margin.
The static margin is given by
\[
\boxed{
SM=x_{NP}-x_{CG}.
}
\]
Step 2: Calculate the initial static margin.
Given,
\[
x_{NP}=0.35c,
\]
\[
x_{CG}=0.20c.
\]
Hence,
\[
SM=0.35c-0.20c=0.15c.
\]
Step 3: Reduce the static margin by \(50\%\).
The new static margin is
\[
SM_{\text{new}}
=
\frac{0.15c}{2}
=
0.075c.
\]
Using
\[
SM_{\text{new}}
=
x_{NP}-x_{CG,\text{new}},
\]
we obtain
\[
0.075c
=
0.35c-x_{CG,\text{new}}.
\]
Therefore,
\[
x_{CG,\text{new}}
=
0.35c-0.075c
=
0.275c.
\]
Hence,
\[
\boxed{0.275c}
\]
is the new CG location.
Thus,
\[
\boxed{(B)}
\]
is the correct answer.