The equation of the hyperbola is \( x^2 - 4y^2 = 16 \). This is of the standard form:
\[
\frac{x^2}{a^2} - \frac{y^2}{b^2} = 1
\]
Comparing this with the given equation, we see that:
\[
a^2 = 16 \quad \text{and} \quad b^2 = 4
\]
Thus, \( a = 4 \) and \( b = 2 \).
The distance between the foci of a hyperbola is given by \( 2c \), where \( c = \sqrt{a^2 + b^2} \). Substituting the values of \( a \) and \( b \):
\[
c = \sqrt{a^2 + b^2} = \sqrt{16 + 4} = \sqrt{20} = 2\sqrt{5}
\]
Therefore, the distance between the foci is:
\[
2c = 2 \times 2\sqrt{5} = 8
\]
So, the correct answer is 8.