Yes, this theater has more floor seats than balcony seats simply because of the ratio. Your answer is actually in the question. For example, if you have 100 floor seats, then according to the ratio you should only have 5 balcony seats. So yes, there are more floor seats than balcony seats.
This is how the whole equation goes:
1/x^-a = x^a
So, 1/5^-2 is the same as 5^2, which is 25.
The answer is 0.8. Non of the options are correct