The formula for the area of a circle is $4530_w63_h16.png$.
It is apparent from the diagram and information in the question that the diameter is the distance between X
Since we are only given the length of the diameter (which is always twice the radius), we'll need to divide 1.62 by 2 to arrive at the radius for use in the above formula.
1.62 \u00F7 2 = 0.81
Plugging that figure into the formula:
A = 3.14 \u00D7 0.6561
A = 2.060154
This is 2.06, when rounded to two decimal places, per instructions in the question.