For a thermally insulated (adiabatic) process, the relation between pressure and volume is given by:
\[
P_1 V_1^\gamma = P_2 V_2^\gamma
\]
Where:
- \( P_1 \) and \( V_1 \) are the initial pressure and volume,
- \( P_2 \) and \( V_2 \) are the final pressure and volume,
- \( \gamma = \frac{5}{3} \) is the adiabatic index (ratio of specific heats).
Given that the gas is compressed to \( \frac{1}{8} \) of its initial volume, we have:
\[
V_2 = \frac{1}{8} V_1
\]
Substituting this into the adiabatic equation:
\[
P_1 V_1^\gamma = P_2 \left( \frac{1}{8} V_1 \right)^\gamma
\]
Simplifying:
\[
P_1 V_1^\gamma = P_2 \times \left( \frac{1}{8} \right)^\gamma V_1^\gamma
\]
Canceling \( V_1^\gamma \) from both sides:
\[
P_1 = P_2 \times \left( \frac{1}{8} \right)^\gamma
\]
Since \( \gamma = \frac{5}{3} \), we have:
\[
P_1 = P_2 \times \left( \frac{1}{8} \right)^{\frac{5}{3}}
\]
Now, calculate \( \left( \frac{1}{8} \right)^{\frac{5}{3}} \):
\[
\left( \frac{1}{8} \right)^{\frac{5}{3}} = \frac{1}{8^{\frac{5}{3}}} = \frac{1}{32}
\]
Therefore:
\[
P_2 = P_1 \times 32
\]
Thus, the ratio of final pressure to initial pressure is:
\[
\frac{P_2}{P_1} = 32
\]
Therefore, the correct answer is Option (2) — \( 32 \).