Step 1: Use the complement rule.
The probability of winning at least one prize is the complement of the probability of not winning any prizes. If the probability of winning on a single ticket is \( \frac{1}{4} \), then the probability of not winning on a single ticket is \( 1 - \frac{1}{4} = \frac{3}{4} \).
Step 2: Calculate the probability of not winning on 5 tickets.
The probability of not winning on all 5 tickets is:
\[
\left( \frac{3}{4} \right)^5 = \frac{243}{1024}.
\]
Step 3: Calculate the probability of winning at least one prize.
The probability of winning at least one prize is the complement:
\[
1 - \frac{243}{1024} = \frac{781}{1024}.
\]
Step 4: Conclusion.
Thus, the probability that the person wins at least one prize is \( \frac{781}{1024} \), which corresponds to option (C).