Step 1: Identify the wave parameters.
Comparing with
\[
y=A\sin(kx)\cos(\omega t),
\]
we get
\[
k=\frac{2\pi}{5}\ \mathrm{m^{-1}},
\qquad
\omega=80\pi\ \mathrm{rad\,s^{-1}}.
\]
Wave speed,
\[
v=\frac{\omega}{k}
=\frac{80\pi}{2\pi/5}
=200~\mathrm{m\,s^{-1}}.
\]
Step 2: Calculate the linear mass density.
\[
\mu=\frac{m}{L}
=\frac{0.02}{1}
=0.02~\mathrm{kg\,m^{-1}}.
\]
Step 3: Find the tension.
For a stretched string,
\[
v=\sqrt{\frac{T}{\mu}}.
\]
Therefore,
\[
T=\mu v^2
=0.02\times(200)^2
=800~\mathrm{N}.
\]
Hence,
\[
\boxed{T=800~\mathrm{N}}
\]
Therefore,
\[
\boxed{(D)}
\]
is the correct answer.