To find the area of Taylor's actual room, we need to convert the dimensions from the scale drawing to their actual values using the given scale.
The scale is 0.25 inch = 1 foot, which means that every inch on the scale drawing represents 4 feet in reality (since 0.25 inch * 4 = 1 foot).
So, to find the actual length and width of the room, we need to multiply the dimensions on the scale drawing by 4.
Length of the actual room = 3.25 inches * 4 feet/inch = 13 feet
Width of the actual room = 2.75 inches * 4 feet/inch = 11 feet
Now, to find the area of the actual room, we multiply the length by the width:
Area of the room = Length * Width = 13 feet * 11 feet = 143 square feet
Therefore, the answer is C. 143 square feet.