The given equation of the parabola is \( y^2-4x-4y+8=0 \).
To find the length of the latus rectum, we need to rewrite this equation in the standard form of a parabola.
Since there is a \(y^2\) term and a \(y\) term, but only an \(x\) term (not \(x^2\)), the parabola opens horizontally.
Group terms in y:
\( (y^2 - 4y) - 4x + 8 = 0 \)
Complete the square for the y terms: \(y^2 - 4y = (y-2)^2 - 4\).
Substitute this back:
\( (y-2)^2 - 4 - 4x + 8 = 0 \)
\( (y-2)^2 - 4x + 4 = 0 \)
\( (y-2)^2 = 4x - 4 \)
\( (y-2)^2 = 4(x - 1) \)
This is of the standard form \( (y-k)^2 = 4a(x-h) \), where the vertex is \((h,k)\) and the length of the latus rectum is \(|4a|\).
Comparing \( (y-2)^2 = 4(x - 1) \) with \( (y-k)^2 = 4a(x-h) \):
Vertex \((h,k) = (1,2)\).
\(4a = 4\).
The length of the latus rectum is \(|4a|\).
Length of latus rectum = \(|4| = 4\).
This matches option (b).
\[ \boxed{4} \]