A 5 in the thousands place means that we have 5 thousands, so it is the same as 5000.
A 5 in the hundreds place means that we have 5 hundreds, so it is the same as 500.
The 5 in the thousands places is 10 times as much as the 5 in the hundreds place.
Thus, the correct alternative is:
"The 5 in the thousands plave is ten times the value of the 5 in the judreds place."