Step 1: Understand the exponential growth formula.
The exponential growth of bacteria can be modeled using the equation:
\[
N(t) = N_0 e^{kt},
\]
where \( N(t) \) is the number of bacteria at time \( t \), \( N_0 \) is the initial number of bacteria, and \( k \) is the growth constant.
Step 2: Use the doubling condition to find \( k \).
We are told that the number of bacteria doubles in 1 hour. Therefore, we have the equation:
\[
2N_0 = N_0 e^{k \cdot 1}.
\]
Solving for \( k \), we get:
\[
2 = e^{k} \quad \Rightarrow \quad k = \ln(2) \approx 0.693.
\]
Step 3: Find the number of bacteria after \( 2\frac{1}{2} \) hours.
Substitute \( k \approx 0.693 \) and \( N_0 = 1000 \) into the equation for \( N(t) \):
\[
N\left(2\frac{1}{2}\right) = 1000 e^{0.693 \cdot 2.5} \approx 1000 \times e^{1.7325} \approx 1000 \times 5.656 = 5656.
\]
Step 4: Conclusion.
Thus, the number of bacteria after \( 2\frac{1}{2} \) hours is approximately 5656, which corresponds to option (C).