Let's calculate the elevation of the hot air balloon step by step.
- The balloon starts at an elevation of 1,100 feet.
- It descends 500 feet: \[ 1,100 - 500 = 600 \text{ feet} \]
- It then rises 950 feet: \[ 600 + 950 = 1,550 \text{ feet} \]
- Next, it descends 375 feet: \[ 1,550 - 375 = 1,175 \text{ feet} \]
Therefore, the elevation of the balloon when it passes over the school is 1,175 feet.
The correct answer is C. 1,175 feet.