Step 1: Use the Beta function:
$\int_0^2 x(2-x)^b dx$: put $x = 2t$. Then it equals $4\cdot2^b\int_0^1 t(1-t)^b dt = 2^{b+2}B(2, b+1)$.
Step 2: Evaluate B:
$B(2,b+1) = \dfrac{1!\,b!}{(b+2)!} = \dfrac{1}{(b+1)(b+2)}$.
So the integral is $\dfrac{2^{b+2}}{(b+1)(b+2)}$.
Step 3: Solve:
We need $\dfrac{2^{b+2}}{(b+1)(b+2)} = \dfrac{32}{7}$. Since 7 divides the denominator, $b+1 = 7$ or $b+2 = 7$. With $b = 6$: $\dfrac{256}{56} = \dfrac{32}{7}$. It works.
Final Answer:
$b = 6$, option (B).
\[ \boxed{6 \text{ (B)}} \]