When an object floats, the weight of the displaced liquid equals the weight of the object. For the block of wood floating in water:
\[
\text{Weight of wood} = \text{Weight of displaced water}
\]
The fraction of the block submerged in water is \( \frac{4}{5} \). Using Archimedes' principle:
\[
\text{Density of water} \times \text{Volume of displaced water} = \text{Density of wood} \times \text{Volume of wood}
\]
Given that the block is just floating in another liquid (with volume submerged), we use the same principle:
Let the density of the liquid be \( \rho \). Then, the density of the wood can be expressed in terms of the density of water and the density of the new liquid:
\[
\rho_{\text{liquid}} = 800 \, \text{kg/m}^3
\]
Thus, the density of the liquid is \( 800 \, \text{kg/m}^3 \).
Therefore, the correct answer is:
\[
\text{(4) } 800
\]