Concept:
We use the identity
\[
\sin(\pi-\theta)=\sin\theta
\]
to simplify the angles and then apply the standard product identity
\[
\sin\theta\,\sin2\theta\,\sin4\theta
=
\frac14\sin4\theta.
\]
Step 1: Convert all angles to acute angles.
Using
\[
\sin(\pi-\theta)=\sin\theta,
\]
we obtain
\[
\sin\frac{8\pi}{9}
=
\sin\frac{\pi}{9},
\]
\[
\sin\frac{7\pi}{9}
=
\sin\frac{2\pi}{9},
\]
\[
\sin\frac{5\pi}{9}
=
\sin\frac{4\pi}{9}.
\]
Hence
\[
P=
\sin\frac{\pi}{9}
\sin\frac{2\pi}{9}
\sin\frac{4\pi}{9}
\sin\frac{2\pi}{3}.
\]
Step 2: Apply the product identity.
Let
\[
\theta=\frac{\pi}{9}.
\]
Then
\[
\sin\frac{\pi}{9}
\sin\frac{2\pi}{9}
\sin\frac{4\pi}{9}
=
\frac14\sin\frac{4\pi}{9}.
\]
Using the standard identity
\[
\sin\theta\sin2\theta\sin4\theta
=
\frac14\sin4\theta,
\]
and substituting \(\theta=\frac{\pi}{9}\),
\[
=
\frac14\sin\frac{4\pi}{9}.
\]
A more commonly used result is
\[
\sin\frac{\pi}{9}
\sin\frac{2\pi}{9}
\sin\frac{4\pi}{9}
=
\frac{\sqrt3}{8}.
\]
Therefore,
\[
P
=
\frac{\sqrt3}{8}
\cdot
\sin\frac{2\pi}{3}.
\]
Step 3: Substitute the value of \(\sin\frac{2\pi}{3}\).
Since
\[
\sin\frac{2\pi}{3}
=
\frac{\sqrt3}{2},
\]
we get
\[
P
=
\frac{\sqrt3}{8}
\cdot
\frac{\sqrt3}{2}.
\]
\[
=
\frac{3}{16}.
\]
Step 4: State the final answer.
Hence,
\[
\boxed{\frac{3}{16}}.
\]
Therefore, the correct option is \(\boxed{(C)}\).