I can't see your diagram, but I'm assuming that the smaller circle is in the bigger circle and they want you to find the area in the bigger circle not taken up by the smaller circle so
find the areas
pi times radius^2
diameter=2r
dimeter/2=radius
larger=20.4=d
20.4/2=r=10.2
pi =aprox 3.14
3.14 times 10.2^2=326.686=area of larger
smaller 10.8=diameter
10.8/2=5.4
3.14 times 5.4^2=91.5624
subtract
326.686-91.5624=235.123
round to 1 decimal place
235.1 cm^2
the answer is C