Step 1: First, we observe the given matrix is a 4x3 matrix. The rank of the matrix is determined by the number of linearly independent rows or columns.
\[
\begin{pmatrix}
1 & 0 & 2 \\
0 & 1 & -2 \\
1 & -1 & 4 \\
2 & 2 & 8 \\
\end{pmatrix}
\]
Step 2: Perform row operations to simplify the matrix. Subtract row 1 from row 3, and subtract twice row 1 from row 4. This leads to:
\[
\begin{pmatrix}
1 & 0 & 2 \\
0 & 1 & -2 \\
0 & -1 & 2 \\
0 & 2 & 4 \\
\end{pmatrix}
\]
Step 3: Continue simplifying by adding row 2 to row 3 and subtracting twice row 2 from row 4:
\[
\begin{pmatrix}
1 & 0 & 2 \\
0 & 1 & -2 \\
0 & 0 & 0 \\
0 & 0 & 0 \\
\end{pmatrix}
\]
Step 4: We observe that there are two non-zero rows, which means the rank of the matrix is 3.