The problem is that .NET uses UTF-16 by default whilst Ruby will use something else (normally UTF-8, but it may also respect encoding that has been set by database or web source).
I think you just need to alter one line:
//convert the input text to array of bytes
byte[] hashData = sha1.ComputeHash(Encoding.ASCII.GetBytes(data));
You may need UTF-8 or even some other encoding instead, depending on the range of passwords accepted by the Ruby version. However, the ASCII coding should at least prove correctness of this answer in general from your sample data.