This is similar to QID:RTE235. The correct answer is "The interface tunnel configuration is not correct." I cannot find what is wrong with the int tunnel 0 config. There is no explanation.
The Tunnel destination should be the IP address of the LAN/Physical interface of the destination router.
So 192.168.2.1
They listed the destination as the virtual IP address of the tunnel, 172.16.1.2
Okay I see it now, thanks! Under "interface Tunnel0" is should read "tunnel destination 192.168.2.1".
It sure helps to know why when prepping for the exam.