In general here we don't give specific product recommendations, so instead let's look at what your options are:
Replace The Wheel
Based on your question you know the spacing of the hub, and you know the size of cassette. You should be able to easily find a replacement online or at your local bike shop. You may have to chat with someone for a bit to make sure you get the right thing. The main things you need to be concerned about are either transferring or replacing your
- 8 speed cassette - if you do that yourself it's easy but does require a special lock nut tool and chain whip.
- Brake Rotor - I don't have a bike with disc brakes, so I can't say for sure, but you would likely only need a set of hex wrenches to do that.
Or most bike shops will swap the parts for you for free when you buy the wheel.
Rebuild The Wheel With a New Hub
If the hub is truly shot, but the rim and spokes are in good condition, you can talk to your shop about having the wheel rebuilt with a new hub. You may have to replace spokes as well if the flange of the hub sits higher or lower. Depending on the labor cost and how nice a while you would have picked above, the cost of rebuilding a wheel can approach or exceed the cost of buying a new wheel outright. But you would have the satisfaction of not contributing to our throw-away society.
Repair The Hub
It's possible that there is a simple bearing issue or some other easily repairable problem with the hub. Steps to rebuild a hub would be a different question, and if you search here you will find several posts of advice. But if you are going to the shop anyway to explore Replacing or Rebuilding, you might as well take the wheel with you and see if you can get out on the cheep with a simple repair.
As far as tools if you want to attempt the overhaul yourself, I can't see the hub clear enough in the pic to make sure, but you would likely need:
- Cassette lock nut tool
- Chain whip
- Cone wrenches in the right size (these are flat/skinny open end wrenches)
- Adjustable/Crescent wrench
- Bearing grease
You may have cartridge bearings, in which case your overhaul job is simpler. But note that if the problem is the freehub and not the hub bearings then the freehub overhaul job is much more complicated.