To find out how many toys Happy Place Toy Factory can box and ship in one hour, you can divide the total number of toys by the total hours taken.
They box and ship 512 toys in 16 hours:
\[ \text{Toys per hour} = \frac{512 \text{ toys}}{16 \text{ hours}} = 32 \text{ toys per hour} \]
Thus, the answer is:
B. 32 toys