Step 1: Understanding the magnetic induction formula.
The magnetic induction \( B \) at a point on the axis of a circular current-carrying coil is given by:
\[
B = \frac{\mu_0 I R^2}{2 (R^2 + x^2)^{3/2}}
\]
where \( I \) is the current, \( R \) is the radius of the coil, and \( x \) is the distance from the center of the coil along the axis.
Step 2: Using the given condition.
We are told that the magnetic induction at the point is \( \frac{1}{\sqrt{8}} \) of its value at the center. At the center, \( x = 0 \), so the magnetic induction is \( B_{\text{center}} = \frac{\mu_0 I}{2 R} \). Set the given condition:
\[
\frac{1}{\sqrt{8}} \times \frac{\mu_0 I}{2 R} = \frac{\mu_0 I R^2}{2 (R^2 + x^2)^{3/2}}
\]
Solving this equation, we get:
\[
x = R \sqrt{3}
\]
Step 3: Conclusion.
The correct answer is (B), \( R \sqrt{3} \).