The calculation part for the specific gravity i.e. density of the metal is correct. Now, for your question "Why isn’t actual volume of metal not equal to the volume of water displaced?", the reason behind this is the cavity inside the sphere. This cavity in the sphere is created by taking out some mass of the metal, so the volume of metal which is taken out is the volume of a cavity. The cavity volume is already given, and the total volume of the water displaced is due to cavity volume and remaining metal volume.