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Two: '0' or '1'
signed magnitude
The answer depends on division of WHAT. And since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.
The answer depends on 0.125 WHAT! Feet, miles, kilometres, parsecs? And since you have not bothered to share that crucial bit of information, I cannot provide a more useful answer.
5 bits are 5 binary digits. If they represent a decimal number, then that number can be anything from zero to 31, and can have either 1 or 2 digits.