The surface area of the two-tiered steps can be calculated by finding the surface area of both rectangular prisms separately and then adding them together.
Surface area of the large rectangular prism on the bottom:
2(lw + lh + wh) = 2(17*14 + 17*6.5 + 14*6.5) = 2(238 + 110.5 + 91) = 879 in^2
Surface area of the small rectangular prism on top:
2(lw + lh + wh) = 2(8.5*14 + 8.5*6.5 + 14*6.5) = 2(119 + 55.25 + 91) = 530.5 in^2
Total surface area of the two-tiered steps:
879 + 530.5 = 1,409.5 in^2
Therefore, the correct answer is 1,409.5 in^2.