40/8 is 5. You can check this by multiplying 8 and 5 and seeing if it equals 40. Also, if you look at 40/8 as a fraction, you can simplify it. 40/8 = 20/4 = 10/2 = 5/1 = 5.
I think the answer is C. "He made a place value error when dividing. If he would have divided 1.09 by 8, he would have found the price of each individual pen.