Ugh... are people still using h-parameter notation?
While a degenerated CE stage has a high output resistance, it still has an output resistance. I believe the question is, "What is the output resistance at the collector, ignoring RC?"
To solve this, imagine RC to be infinite; now apply a "wiggle voltage" to eo. When you wiggle eo, how much current will flow into (or out of) the collector? The "Show That" equation gives you a hint: hoe. What is hoe? How can it be represented using a physical element? Draw that element into the diagram, and start drawing and labeling where currents might flow due to wiggling eo.
- Carl