Step 1: Understanding the Question:
The volume of a cylinder is \(V = \pi r^2 l\). The maximum fractional error adds up the fractional errors, with the power multiplying the radius error.
Step 2: Key Formula:
\[ \frac{\Delta V}{V} = 2\frac{\Delta r}{r} + \frac{\Delta l}{l} \]
Step 3: Errors in l and r:
Length: \(\frac{\Delta l}{l} = \frac{0.1}{8.0} = 0.0125 = 1.25\%\).
Diameter: the least count is \(0.01\) cm, so \(\Delta d = 0.01\). The radius is half the diameter, so \(\Delta r = 0.005\) cm, and \(\frac{\Delta r}{r} = \frac{0.005}{4.0} = 0.125\%\).
Step 4: Combine:
\(\frac{\Delta V}{V}\times100 = 2(0.125) + 1.25 = 0.25 + 1.25 = 1.5\%\).
Final Answer:
The percentage error in the volume is \(1.5\%\), option (C).
\[ \boxed{1.5\%} \]