Step 1: Understanding the Concept
The wire is a cylinder, so its density is \(\rho=\frac{m}{\pi r^{2}l}\). For a product or quotient, the fractional errors add, and a power multiplies the fractional error of that quantity.
Step 2: Formula for the error
\(\frac{\Delta\rho}{\rho}=\frac{\Delta m}{m}+2\frac{\Delta r}{r}+\frac{\Delta l}{l}\).
Step 3: Calculation
\(\frac{\Delta m}{m}=\frac{0.002}{0.4}=0.5\%\), \(\frac{\Delta r}{r}=\frac{0.006}{0.6}=1\%\), \(\frac{\Delta l}{l}=\frac{0.04}{8}=0.5\%\).
Step 4: Add the errors
\(\frac{\Delta\rho}{\rho}\times 100=0.5+2(1)+0.5=3\%\), which is option (C).
Final Answer:
The percentage error in the density is 3 percent.
\[ \boxed{\text{(C) }3\%} \]