Step 1: Using the given conditions.
We are given that \( L^2 = L^{-1} \), so:
\[
L^4 = I \quad \text{(since multiplying both sides by \( L^2 \))}
\]
Step 2: Calculate \( M - N \).
From the given relations:
\[
M = L^8 = (L^4)^2 = I^2 = I
\]
\[
N = L^2
\]
Thus, \( M - N = I - L^2 \).
Step 3: Finding the determinant.
Since \( L^2 = L^{-1} \), we have:
\[
I - L^2 = 0 \quad \text{(because \( L^2 \) is the inverse of \( L \))}
\]
Hence, the determinant of \( M - N \) is \( 0 \):
\[
|M - N| = 0
\]
Thus, the correct answer is \( 0 \).