Three gallons because there are 4 quarts in a gallon so 8 quarts equals 2 gallons, not three.
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3 gallons is bigger than 8 quarts.
3 gal = 12 qts
1 gallon = 4 quarts
1 quart = 0.25 gallon
1 gallon is 4 quarts
So 32 quarts is 32/4 = 8 gallons
The two things you mention are equal