Simple question from a beginner

Hi'

Im a beginner in solidworks.

Im having trouble with a measurement the file is attached.

My rectangle is 2.00 and my cut out circle is 1.75

what is happening is that the circle is bigger then the rectangle.(WHY)

when the rectangle is 2" and the circle is 1" 3/4

Im sure this is very simple but i cant figure out why this is happening..

thank you

SolidworksGeneral