Step 1: The largest circle that fits inside a rectangle has a diameter equal to the shorter side of the rectangle.
Step 2: The shorter side here is 12 cm, so the diameter of the circle \( = 12 \) cm and the radius \( = 6 \) cm.
Step 3: Area \( = \pi r^2 = \dfrac{22}{7} \times 6 \times 6 = \dfrac{792}{7} \approx 113.14 \) cm2.
Answer: 113 cm2.