Step 1: Understand the historical context.
At the time of India's Independence in 1947, the Indian currency system was based on the "Anna" system. One Indian Rupee (INR) was equivalent to 16 Annas, and each Anna was divided into 4 Paise. Thus, the conversion should be correct based on this system.
Step 2: Conversion breakdown.
1 Rupee = 16 Annas = 64 Paise. Therefore, option (B) stating that one rupee was equal to 2 Eight Annas is incorrect, as one rupee was equal to 16 Annas, not 8 Annas.
Step 3: Conclusion.
Thus, the correct answer is (B) 2 Eight Annas.
Final Answer:
\[
\boxed{\text{2 Eight Annas}}
\]