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area of full circle is picube/4
area of half circle is picube /8

now area of circle with radius pi/4 is picube /16
area not covered by inscribed circle is picube /8 - picube /16 = picube /16

area of half circle / area not covered by inscribed circle = picube/8 divides by picube/16
which will give us ratio 2:1

answer is E
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'A circle is inscribed right in the middle of a semicircle with a diameter of 'Pi' as shown below....' is the actual question.

For me this question is ambiguous since I don't understand which circle has the diameter of 'Pi' whether it is the semicircle or the inscribed circle. BUT WHAT I LIKE ABOUT THIS QUESTION IS SINCE IT'S A RATIO QUESTION , NO MATTER FOR WHICH CIRCLE YOU CONSIDER THE DIAMETER AS 'Pi' YOU GET THE SAME ANSWER 2:1
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Automated notice from GMAT Club BumpBot:

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