Instead of tracking the total age of all teachers year by year, we can track the average age directly, using the rule that a group's average age changes by the number of years passed once everyone in it ages, and changes further whenever people join or leave with a different average age. Once we get the final average, we check it against each option.
From 2000 to 2002 (2 years), everyone ages 2 years, so the average of the original 100 rises from 50 to 52. Removing 20 teachers with average age 60 changes the average of the remaining 80 to \[ \frac{100 \times 52 - 20 \times 60}{80} = \frac{5200 - 1200}{80} = \frac{4000}{80} = 50 \] From 2002 to 2005 (3 years), this group of 80 ages further, so their average rises from 50 to 53. Adding 40 new teachers with average age 38 changes the average of all 120 teachers to \[ \frac{80 \times 53 + 40 \times 38}{120} = \frac{4240 + 1520}{120} = \frac{5760}{120} = 48 \] From 2005 to 2008 (3 more years), this full group of 120 ages further, so the average rises from 48 to \( 48 + 3 = 51 \).
Therefore, the correct answer is 51 years.