Answer
.83
Work Step by Step
First, we know that the radius of the larger circle is equal to 4 cm, since this is the length of the side of a square. We now find the length of the diagonal of the square. This is a 45-45-90 triangle, so its length is: $4 \sqrt2 = 5.66$.
We know the diameter equals half the difference between these two, so we find:
$ d = 1/2(5.66 - 4) = .83$