To determine the unit rate for 1 bag of chips, we start with the given relationship: 5 bags cost $6.25.
To find the cost for 1 bag, we can divide the total cost by the number of bags:
\[ \text{Cost per bag} = \frac{\text{Total cost}}{\text{Number of bags}} = \frac{6.25}{5} \]
Calculating this:
\[ \frac{6.25}{5} = 1.25 \]
Thus, the unit rate for 1 bag of chips is $1.25.
Given the options, the correct answer is:
$1.25.