Diameter of the circular pond = 17.5 m

Let r be the radius of the park = (17.5/2) m = 8.75 m

Given that the circular pond is surrounded by a path of width 2 m.

So, Radius of the outer circle = R = (8.75+2) m = 10.75 m

Area of the road = Area of the outer circular path – Area of the circular pond

= πr² – πR²

= 3.14 × (10.75)² – 3.14 × (8.75)²

= 3.14 × ((10.75)² – (8.75)²)

= 3.14 × ((10.75 + 8.75) × (10.75 – 8.75))

= 3.14 × 19.5 × 2 = 122.46 m²

Hence, the area of the path is 122.46 m².

Now, Cost of constructing the path per m² = Rs. 25

∴ cost of constructing 122.46m² of the path = Rs. 25 × 122.46 = Rs. 3061.50