Step 1: Calculate the useful heat gained by water.
\[
m=1600\,\text{g},
\qquad
\Delta T=95-20=75^\circ\text{C}.
\]
Heat gained,
\[
Q
=
mc\Delta T
=
1600\times75
=
1.2\times10^5\ \text{cal}.
\]
Converting into joules,
\[
Q
=
1.2\times10^5\times4.2
=
5.04\times10^5\ \text{J}.
\]
Step 2: Calculate the electrical energy supplied.
Power,
\[
P=1.5\,\text{kW}=1500\,\text{W}.
\]
Time,
\[
t=7\times60=420\,\text{s}.
\]
Electrical energy supplied,
\[
E=Pt
=1500\times420
=6.3\times10^5\ \text{J}.
\]
Step 3: Find the efficiency.
\[
\eta
=
\frac{Q}{E}\times100
=
\frac{5.04\times10^5}{6.3\times10^5}\times100
=
80\%.
\]
Hence,
\[
\boxed{80\%}
\]
Therefore,
\[
\boxed{(C)}
\]
is the correct answer.