For a fully-developed flow in a channel, the average shear stress can be calculated using the following formula:
\[
\tau_{\text{avg}} = \frac{P_{\text{in}} - P_{\text{out}}}{L} \times \frac{h}{2},
\]
where \( P_{\text{in}} \) and \( P_{\text{out}} \) are the inlet and outlet pressures, \( L \) is the length of the channel, and \( h \) is the height of the channel.
Substituting the given values:
\[
\tau_{\text{avg}} = \frac{1.2 - 1.0}{5} \times \frac{0.5}{2} = \frac{0.2}{5} \times 0.25 = 0.01 \, \text{Pa}.
\]
Step 1: Apply the formula.
The formula relates the pressure difference and the dimensions of the channel to calculate the average shear stress.
Step 2: Conclusion.
Thus, the absolute value of the average shear stress is \( 0.01 \, \text{Pa} \).
Final Answer: \text{(C) 0.01}