We can solve this question using counting methods.
P(exactly 2 girls and 2 boys) = (number of 4-baby outcomes with exactly 2 girls and 2 boys)/(TOTAL number of 4-baby outcomes)

As always, we'll begin with the denominator.

TOTAL number of 4-baby arrangements
There are 2 ways to have the first baby (boy or girl)
There are 2 ways to have the second baby (boy or girl)
There are 2 ways to have the third baby (boy or girl)
There are 2 ways to have the fourth baby (boy or girl)
By the Fundamental Counting Principle (FCP), the total number of 4-baby arrangements = (2)(2)(2)(2) = 16


Number of 4-baby outcomes with exactly 2 girls and 2 boys
This portion of the question boils down to "In how many different ways can we arrange 2 G's and 2 B's (where each G represents a girl, and each B represents a boy)?"

----------ASIDE-------------------------
When we want to arrange a group of items in which some of the items are identical, we can use something called the MISSISSIPPI rule. It goes like this:

If there are n objects where A of them are alike, another B of them are alike, another C of them are alike, and so on, then the total number of possible arrangements = n!/[(A!)(B!)(C!)....]

So, for example, we can calculate the number of arrangements of the letters in MISSISSIPPI as follows:
There are 11 letters in total
There are 4 identical I's
There are 4 identical S's
There are 2 identical P's
So, the total number of possible arrangements = 11!/[(4!)(4!)(2!)]
------------BACK TO THE QUESTION---------------------------

Our goal is to arrange the letters G, G, B, and B
There are 4 letters in total
There are 2 identical G's
There are 2 identical B's
So, the total number of possible arrangements = 4!/[(2!)(2!)] = 6


So.....
P(exactly 2 girls and 2 boys) = 6/16 = 3/8

Answer: A