Step 1: Recall the definition of Poisson's ratio.
Poisson's ratio is
\[
\mu
=
\frac{\text{Lateral strain}}
{\text{Longitudinal strain}}.
\]
Step 2: Substitute the given values.
Given,
\[
\text{Lateral strain}=0.8\%,
\]
and
\[
\text{Longitudinal strain}=4\%.
\]
Therefore,
\[
\mu
=
\frac{0.8}{4}
=
0.2.
\]
Hence,
\[
\boxed{0.2}
\]
is the correct answer.
Therefore,
\[
\boxed{(A)}
\]
is the correct answer.