We are given a monoatomic gas in a thermally insulated container. This means the process is adiabatic, and the gas undergoes a sudden compression. For an adiabatic process, the relationship between pressure and volume for an ideal gas is given by the following equation:
\[
P_1 V_1^{\gamma} = P_2 V_2^{\gamma},
\]
where \( P_1 \) and \( P_2 \) are the initial and final pressures, \( V_1 \) and \( V_2 \) are the initial and final volumes, and \( \gamma \) is the adiabatic index, which for a monoatomic gas is \( \gamma = \frac{5}{3} \).
We are given that the final volume is \( \frac{1}{8} \) of the initial volume, so:
\[
V_2 = \frac{V_1}{8}.
\]
Now, substituting into the adiabatic relation:
\[
P_1 V_1^{\frac{5}{3}} = P_2 \left( \frac{V_1}{8} \right)^{\frac{5}{3}}.
\]
Simplifying:
\[
P_1 V_1^{\frac{5}{3}} = P_2 \cdot V_1^{\frac{5}{3}} \cdot \left( \frac{1}{8} \right)^{\frac{5}{3}}.
\]
Cancelling \( V_1^{\frac{5}{3}} \) on both sides:
\[
P_1 = P_2 \cdot \left( \frac{1}{8} \right)^{\frac{5}{3}}.
\]
Now, \( \left( \frac{1}{8} \right)^{\frac{5}{3}} = \frac{1}{8^{\frac{5}{3}}} = \frac{1}{32} \), so:
\[
P_2 = P_1 \times 8.
\]
Thus, the ratio of final pressure to initial pressure is:
\[
\frac{P_2}{P_1} = 8.
\]
Therefore, the correct answer is (1) 8.