time taken for each drop to reach to the ground:
h=1/2gt2
5 = 0.5gt2
t = 1 sec
when 5th drop starts to fall, 1st reaches the ground. So the rate of falling of drops is 4 balls per sec (or 1 ball per 0.25 sec)
so when the third ball would have started, time passed would be 0.5 sec
after that 0.5 sec more have passed.. so the third is now in the air.
and the distance traversed by it is:
y=1/2gt2
y=1/2(10)(0.5)2
y=1.25m
thus, the height from the ground is 3.75m