Step 1: Recall the energy relations for a satellite in circular orbit.
For a satellite moving in a circular orbit of radius \( r \), the gravitational force provides the necessary centripetal force.
The standard energy relations are:
\[
K=\frac{GMm}{2r}
\]
and
\[
U=-\frac{GMm}{r}
\]
where \( K \) is kinetic energy and \( U \) is gravitational potential energy.
Step 2: Write the expression for total mechanical energy.
The total energy \( E \) of the satellite is the sum of kinetic and potential energies:
\[
E=K+U
\]
Substituting the standard expressions,
\[
E=\frac{GMm}{2r}-\frac{GMm}{r}
\]
Step 3: Simplify the total energy expression.
Take \( \dfrac{GMm}{2r} \) as common:
\[
E=\frac{GMm}{2r}-\frac{2GMm}{2r}
\]
\[
E=-\frac{GMm}{2r}
\]
Step 4: Compare total energy with kinetic energy.
We already know that
\[
K=\frac{GMm}{2r}
\]
Hence,
\[
E=-\frac{GMm}{2r}=-K
\]
Step 5: Note that the height \( h \) only changes the orbital radius.
If the satellite is at height \( h \) above the earth’s surface, then
\[
r=R+h
\]
where \( R \) is the radius of the earth.
But the relation
\[
E=-K
\]
remains true for any circular orbit, irrespective of the value of \( h \).
Step 6: Physical interpretation.
The total energy of a bound satellite is always negative.
Its magnitude equals the kinetic energy, which means:
\[
|E|=K
\]
So the total energy is exactly the negative of the kinetic energy.
Step 7: Final conclusion.
Therefore, the total energy of the satellite is
\[
\boxed{-K}
\]
Hence, the correct option is
\[
\boxed{(1)\ -K}
\]