All you need to do is simplify.
y - 4 = 1/4(x - 8)
y - 4 = 1/4x - 1/4*8
y - 4 = 1/4x - 2
y = 1/4x - 2 + 4
y = 1/4x + 2
I'm guessing you left off the slope in your options, but if there is supposed to be a 1/4 before the x, then the answer is:
C. y = x + 2