32-bit versions of Windows are able to use up to 4 gigs of RAM. However, at times they might report a smaller amount as usable. Try flashing your BIOS to the latest version. That fixes most of memory issues. Go to the manufacturer's website for the latest BIOS drivers. Also from the screenshot, your computer has a 64-bit CPU. Try getting a 64-bit version of Windows.
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Saibal Ghosh
@Saibal Ghosh