Step 1: Find the radius of the loop
Since \( \rho \) is linear mass density:
\[
m = \rho \times 2\pi R.
\]
Solving for \( R \):
\[
R = \frac{m}{2\pi \rho}.
\]
Step 2: Compute moment of inertia
For a circular ring about its diameter:
\[
I = \frac{1}{2} m R^2.
\]
Substituting \( R = \frac{m}{2\pi \rho} \),
\[
I = \frac{1}{2} m \left(\frac{m}{2\pi \rho}\right)^2.
\]
\[
I = \frac{m^3}{8\pi^2 p^2}.
\]
Thus, the correct answer is \( \boxed{\frac{m^3}{8\pi^2 p^2}} \).