Answer
The error is in the third step. and the correct answer is $x^4$.
Work Step by Step
The given expression is
$=\frac{x^5\cdot x^3}{x^4}$
Use the power of a product property.
$=\frac{x^{5+3}}{x^4}$
Simplify.
$=\frac{x^{8}}{x^4}$
Use the power of a quotient property.
$=x^{8-4}$
Simplify.
$=x^{4}$
Hence, the error is in the third step. and the correct answer is $x^4$.