Concept:The problem uses the repeated replacement formula: final concentration equals initial concentration multiplied by (1−Vx)n, where x is the amount replaced each time, V is the total volume, and n is the number of replacements.Explanation:Initial milk volume is 80 liters.Let x liters of the mixture be removed and replaced with water each time.After the first replacement, milk left = (80−x) liters.The fraction of milk in the mixture becomes 8080−x.After the second replacement, the same fraction of milk is removed again.Thus milk left after the second replacement = (8080−x)×(80−x)=80(80−x)2.Hence the final concentration of milk = (8080−x)2.Given final concentration = 96.04%=0.9604.So (8080−x)2=0.9604.Taking square root: 8080−x=0.9604=0.98.Then 80−x=0.98×80=78.4.Therefore x=80−78.4=1.6 liters.Answer:1.6 liters (Option B).