SOLUTION STEPS:
  1. Split the decimal: 2.75 = 2 + 0.75. Write 0.75 as a fraction: 75/100.
  2. Simplify 75/100: divide top and bottom by 25 to get 3/4.
  3. So 2.75 = 2 3/4. Match option (1): 2 3/4.