The top half of the shape is a semi-circle (half of a circle). The area is 0.5 * pi * r^2
0.5 * pi * 2^2 = 2pi
The bottom half is also a semi-circle, but it only has a radius of 1 in, so its area is 0.5 * pi * 1^2 = 0.5pi
The total area is 2.5pi or 7.854 in^2