That's not "pence" as in denomination, that's "pense", a Latin word, part of the motto of the Order of the Garter: HONI SOIT QUI MAL Y PENSE, roughly translated to "Shame on him who thinks evil of this".
The four quarters of the shield represent England (top left and bottom right - the pre-eminent positions in heraldry), Scotland (top right) and Ireland (bottom left). Wales is "merely" a Principality, and not represented on the shield.
As for the coin itself, it is indeed a shilling of 1888: KM#761, Spink#3926. The type (Jubilee small head) was only issued for three years 1887-1889. Mintage for 1888 was a total of a bit over 4½ million.
There is an 1888/7 overdate listed in the catalogues, for slightly more than the price of a "normal" 1888. I don't know what it's supposed to look like, but there does seem to be something odd about the last 8 there.
I'd grade your coin a British Fine, American VF. $8 sounds fair enough to me, especially if it is actually the overdate.
Don't say "infinitely" when you mean "very"; otherwise, you'll have no word left when you want to talk about something really infinite. - C. S. Lewis