Concept:
For a stationary source and an observer moving towards the source, the apparent frequency is given by
\[
f' = f\left(\frac{v+v_o}{v}\right),
\]
where
\[
v=\text{velocity of sound},
\qquad
v_o=\text{velocity of observer}.
\]
Step 1: Write the given information.
The observer moves with speed
\[
v_o=\frac{v}{4}.
\]
Step 2: Calculate the apparent frequency.
Using Doppler's formula,
\[
f'
=
f\left(\frac{v+\frac{v}{4}}{v}\right).
\]
\[
=
f\left(\frac{5v}{4v}\right).
\]
\[
=
\frac54 f.
\]
Step 3: Find the percentage increase in frequency.
Increase in frequency:
\[
\Delta f
=
f'-f
=
\frac54f-f.
\]
\[
=
\frac14f.
\]
Therefore,
\[
\text{Percentage Increase}
=
\frac{\Delta f}{f}\times100.
\]
\[
=
\frac14\times100.
\]
\[
=
25\%.
\]
Therefore,
\[
\boxed{\text{Percentage increase}=25\%}
\]
\[
\boxed{\text{Answer = (A)}}
\]