Potential energy is the energy possessed by a body while at rest while kinetic energy possessed by a body in motion. In this case the energy of the bob at the highest point is the potential energy while the energy possessed by the bob at the lowest point is the kinetic energy. The potential energy is converted to kinetic energy while the bob sets in motion . Therefore;
1/2mv²=mgh
= 1/2 v² =gh
1/2× 2.7² = 9.81 h
h = 0.372 m