1) Tt <= RTT (because we cant transmit at more speed at given bandwidth. You cant have window size considering max segment lifetime)
Thus, window size = 16Mb
Thus, bits to represent this window = 21 bits
2) We need atleast 22 bits as we do in GBN because we need to differentiate between the sequnce nos for the 1st window and next consecutive window. If we take 21 bits, consider the foolowing situation:
Host A transmits with seq no 0.
Host B receives it and now, as 221 bytes are received, Host B sends ack no of next byte it expects. But it needs to send ACK 0 as sequence space is over for host B.
Now, host A wouldnt understand if this is proper ACK or if the previous packet was lost.
So, 21 bits are insufficient.