The issue is that router R2 is not installing the network 172.16.33.1/32 in the routing table due to an incorrect access list configuration. The correct answer is option C, which will allow the network to be installed in the routing table by permitting addresses from 172.16.33.0 to 172.16.33.255 with a wildcard mask of 0.0.0.255.

The current access list on R2, “access-list 1 permit 172,16,32,0 0,0,0,255”, only permits addresses from the range of 172,16,32,0 to 172,16,32,255 due to its wildcard mask of “0,.0,.0,.255”. This does not include the address “172,.16,.33,.1”.