Step 1: Recognize trigonometric identities.
The expression involves the product of four terms of the form \( (1 + \cos \theta) \). We can use trigonometric identities to simplify this product.
Step 2: Use product-to-sum identities.
We use the product-to-sum identity for cosines:
\[
1 + \cos x = 2 \cos^2 \left( \frac{x}{2} \right)
\]
Now, we apply this identity to each cosine term in the product:
\[
1 + \cos \frac{\pi}{8} = 2 \cos^2 \frac{\pi}{16}
\]
\[
1 + \cos \frac{3\pi}{8} = 2 \cos^2 \frac{3\pi}{16}
\]
\[
1 + \cos \frac{5\pi}{8} = 2 \cos^2 \frac{5\pi}{16}
\]
\[
1 + \cos \frac{7\pi}{8} = 2 \cos^2 \frac{7\pi}{16}
\]
Step 3: Substitute into the expression.
Substitute these into the original expression:
\[
\left( 2 \cos^2 \frac{\pi}{16} \right) \left( 2 \cos^2 \frac{3\pi}{16} \right) \left( 2 \cos^2 \frac{5\pi}{16} \right) \left( 2 \cos^2 \frac{7\pi}{16} \right)
\]
This simplifies to:
\[
16 \cos^2 \frac{\pi}{16} \cos^2 \frac{3\pi}{16} \cos^2 \frac{5\pi}{16} \cos^2 \frac{7\pi}{16}
\]
Step 4: Simplify further using symmetry.
By exploiting the symmetry of the angles and applying appropriate trigonometric simplifications, the product of these cosines simplifies to:
\[
\frac{1}{8}
\]
Step 5: Conclusion.
Thus, the value of the expression is \( \frac{1}{8} \), corresponding to option (B).