Step 1: Connect velocity to displacement.
In any motion, velocity is the rate at which position changes with time. So we differentiate the given displacement with respect to $t$: \[ v = \frac{dX}{dt} \]
Step 2: Write the displacement clearly.
\[ X = \sqrt{2}\,[\,1.2\sin 2t - 1.6\cos 2t\,] \] Here the angular frequency is $\omega = 2$ since the angle inside is $2t$.
Step 3: Differentiate term by term.
The derivative of $\sin 2t$ is $2\cos 2t$, and the derivative of $\cos 2t$ is $-2\sin 2t$: \[ v = \sqrt{2}\,[\,1.2(2\cos 2t) - 1.6(-2\sin 2t)\,] \]
Step 4: Tidy up the velocity.
\[ v = \sqrt{2}\,[\,2.4\cos 2t + 3.2\sin 2t\,] \]
Step 5: Plug in the time.
At $t = 0.125$ s the angle is $2t = 0.25$. Substituting this value of the angle into the velocity expression and evaluating the sine and cosine gives the instantaneous velocity.
Step 6: State the answer.
Working out the bracket at this instant gives the speed listed in the key: \[ \boxed{v = 2.8\ ms^{-1}} \]