How many possible policies in a Markov Decision Process?
Looks like you are a bit confused by the notion of MDP policy. There's a detailed discussion with lots of examples in this question.

A policy is any possible strategy in a given environment. Example: "go $East$ in any state" is a valid strategy in your MDP (though maybe not optimal), as well as "go $West$ in any state".

So there are 3 states and 2 possible actions per each, hence $2^3=8$ possible strategies: $EEE$, $EEW$, ..., $WWW$.