In OSPFv2, if the Router ID is not manually configured, the router selects the highest IP address from its active Loopback interfaces. If there are no Loopback interfaces, it chooses the highest IP address from its active physical interfaces. In this scenario, the router has a Loopback0 interface with the IP address 192.168.1.1. Although 172.16.0.1 on GigabitEthernet0/1 might seem higher, OSPF prioritizes Loopback interfaces for the Router ID selection. Thus, the Router ID will be 192.168.1.1 from the Loopback0 interface.
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Cisco CCNA 200-301
IP Connectivity
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