Steps of construction:
(a) Marks a point ‘0’ with a sharp pencil where we want the centre of the circle.
(b) Open the compasses 4 cm.
(c) Place the pointer of the compasses on C.
(d) Turn the compasses slowly to draw the circle.
(e) Again open the compasses 2.5 cm and place the pointer of the compasses on D.
(f) Turn the compasses slowly to draw the second circle.
Hence, it is the required figure