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The radius of the coin is 0.5 in.
Watch for the position of the center of the coin (Xc,Yc).
If 0.5 < Xc < 1.5 and 0.5 < Yc < 1.5, then the coin does not touch the grid lines.
So, when the center of your coin is inside of this square 0.5 < Xc < 1.5, 0.5 < Yc < 1.5, then there is no touching.
The area of the small square is 1 square unit. The area of the grid square is 4 units.
The answer to the problem's question is: the probability of not touching is
.
Solved.