153.86 sq. in. are covered with sauce.
Since 1 inch all around the crust is not covered, this takes 2 inches off of the diameter: 16-2 = 14
The diameter of the circle covered in sauce is 14; the radius is half of that, 14/2 = 7.
The area covered by sauce is found by A = πr² = 3.14(7²) = 3.14(49) = 153.86