192.168.20.160 can't be used because it's a network address (as you can see in the diagram). With a mask of 255.255.255.224 (19 bits), the following networks can be configured; therefore those IP addresses can't be assigned to a host:
192.168.20.0
192.168.20.32
192.168.20.64
192.168.20.96
192.168.20.128
192.168.20.160
192.168.20.192 - not used in the diagram
192.168.20.224 - not used in the diagram
Edit: Per the diagram, PC2 should have IP address 192.168.20.161