The correct answer is $\boxed{\text{C) 32.27}}$.
To convert a number from decimal to octal, you can use the following steps:
- Divide the decimal number by 8 repeatedly until the remainder is 0.
- Write down the quotients in reverse order, starting with the largest.
- If the remainder is not 0, add 1 to the last digit of the octal number.
For example, to convert the number 11010.1011 to octal, we would do the following:
- $11010.1011 \div 8 = 138.125$
- $138 \div 8 = 17 \text{ R } 4$
- $17 \div 8 = 2 \text{ R } 3$
- $2 \div 8 = 0$
- The octal equivalent of 11010.1011 is $173.4$.
However, in this case, the number 11010.1011 is not a valid octal number. This is because the octal number system only has the digits 0, 1, 2, 3, 4, 5, 6, and 7. Therefore, the octal equivalent of 11010.1011 is $\boxed{\text{32.27}}$, which is the decimal equivalent of $173.4$ rounded to two decimal places.