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A circle with circumference 4 cm and radius $r$ is inscribed inside a square as shown in the figure.

What is the area of the shaded region in the figure?

$16 \pi \text{ cm}^2$

$\cfrac{16 - 4 \pi}{\pi} \text{ cm}^2$

$16 \text{ cm}^2$

$\cfrac{4 - 4 \pi}{\pi^2} \text{ cm}^2$

$\cfrac{16 - 4 \pi}{\pi^2} \text{ cm}^2$