📖 Explanation
To determine if two computers are on the same network, each calculates the network ID of the other using its own netmask.
C1's network ID is 203.197.2.53 & 255.255.128.0=203.197.0.0. Checking C2, C1 computes 203.197.75.201 & 255.255.128.0=203.197.0.0. Since both match, C1 assumes C2 is on the same network.
C2's network ID is 203.197.75.201 & 255.255.192.0=203.197.64.0. Checking C1, C2 computes 203.197.2.53 & 255.255.192.0=203.197.0.0. Because the network IDs (203.197.64.0 vs 203.197.0.0) differ, C2 assumes C1 is on a different network.
Therefore, C1 assumes C2 is on the same network, while C2 assumes C1 is on a different network.