The friction is 2.5N. The Net force is 10 N - 2.5 N .= 7.5 N.
acceleration = 7.5 / 5 = 1.5 m/s^2
The height difference is found by

Then the change in potential energy is
C. The object is not in motion, ruling out A. We are not adding mass in any way, nor does adding heat to object increase its mass, therefore also ruling out B. Finally, we are not changing the object's position in such a way that gives it a higher ability to do work, ruling out D.