Speed downstream:
\[
8 + 2 = 10 \text{ km/hr}
\]
Speed upstream:
\[
8 - 2 = 6 \text{ km/hr}
\]
Let the distance be \( d \).
Total time for round trip:
\[
\frac{d}{10} + \frac{d}{6} = \frac{32}{60}
\]
Solving:
\[
\frac{6d + 10d}{60} = \frac{32}{60}
\]
\[
\frac{16d}{60} = \frac{32}{60}
\]
\[
16d = 32
\]
\[
d = 2
\]
Thus, the correct answer is 2 km.