There isn't a single step to this, but there are a couple of functions you can string together to get what you want.
First, as you've probably found, you can't ROUND() a date or duration - ROUND() only works on numeric values, so the first step is to convert the duration into a number of minutes. Fortunately there's the built-in function DUR2MINUTES() that will do this.
=DUR2MINUTES(C2) => 488
(based on 8h 7m 53s in C2, that equates to 488 minutes)
Once you have a number of minutes, you can round that to the nearest 5 minutes using MROUND():
=MROUND(DUR2MINUTES(C2),5) => 490
(MROUND takes a number and rounds it to the nearest multiple of the provided factor, in this case 5)
Finally, you can use the DURATION() function to convert the number of minutes into a new duration value.
All-in, it looks something like this (based on C2):
=DURATION(,,,MROUND(DUR2MINUTES(C2),5)) => 8h 10m
What you'll get initially is something like '490m', but you can use the standard cell formatting to set the duration format to show hours and minutes.