SOLUTION — Since, the focus and vertex of the parabola are on $y$-axis, therefore its directrix is parallel to $x$-axis and the axis of parabola is $y$-axis.
Let equation of directrix be $y=k$.
$\therefore \quad \frac{k+2}{2}=4 \Rightarrow k=6$
$\therefore$ Equation of directrix is $y=6$
$\therefore$ By definition of Parabola,
$\Rightarrow \quad \begin{array}{rlrl}(x-0)^2+(y-2)^2 =(y-6)^2 \\x^2+8 y =32\end{array}$
So, The correct option of this question will be (C).