Concept:
For a vertical aerial photograph,
\[
\boxed{
\text{Scale}=\frac{f}{H}
}
\]
where
\[
f=\text{Focal length},
\]
\[
H=\text{Flying height above ground}.
\]
Also,
\[
\text{Scale}
=
\frac{\text{Photo length}}{\text{Ground length}}.
\]
Step 1: Calculate the photo scale.
Ground length
\[
1\text{ km}=100000\text{ cm}
\]
Photo length
\[
8\text{ cm}
\]
Hence,
\[
\text{Scale}
=
\frac{8}{100000}
=
\frac{1}{12500}
\]
Step 2: Calculate the flying height.
Given,
\[
f=160\text{ mm}=0.16\text{ m}
\]
Using
\[
\frac{f}{H}
=
\frac{1}{12500},
\]
\[
H
=
0.16\times12500
=
2000\text{ m}
\]
Thus,
\[
\boxed{H=2000\text{ m}}
\]
Therefore, the correct option is
\[
\boxed{(B)\;2000\text{ m}.}
\]