We are given two equations of circles:
1. \( S: (x - 1)^2 + (y - 3)^2 = r^2 \)
2. \( S': x^2 + y^2 - 8x + 2y + 8 = 0 \)
For the second circle, we complete the square:
\[
x^2 - 8x + y^2 + 2y = -8 \quad \Rightarrow \quad (x - 4)^2 + (y + 1)^2 = 7
\]
Thus, the center of \( S' \) is \( (4, -1) \) and the radius is \( \sqrt{7} \).
Now, for the first circle \( S \), the center is \( (1, 3) \) and the radius is \( r \).
Next, calculate the distance from the point \( (-3, -2) \) to the centers of both circles:
1. Distance from \( (-3, -2) \) to \( (1, 3) \):
\[
\text{Distance} = \sqrt{(-3 - 1)^2 + (-2 - 3)^2} = \sqrt{16 + 25} = \sqrt{41}
\]
Since \( \sqrt{41} < r \), the point lies outside \( S \).
2. Distance from \( (-3, -2) \) to \( (4, -1) \):
\[
\text{Distance} = \sqrt{(-3 - 4)^2 + (-2 + 1)^2} = \sqrt{49 + 1} = \sqrt{50}
\]
Since \( \sqrt{50} < \sqrt{7} \), the point lies inside \( S' \).
Thus, the point \( (-3, -2) \) lies inside \( S' \) only.