First, start by transferring a liter to a gallon. 3.78 liters in 1 gallon.
This means they pay 1.65*3.78=6.24 euros per gallon of gasoline. If the conversion is 1 us dollar = .76 euros, set up a proportion where x$=6.24euros.... .76x=6.24.... x=$8.21
Next, do the reverse. One liter is .26 gallons, meaning we pay 3.90*.26=$1.01 for a liter of gas. Convert this back into euros by multiplying it by .76... 0.77 Euros
1/2 of 1/4 is 1/8 and 1/2 of 8 is 4 so 4 1/8 + 8 1/4 is 12 and 3/8 or about $12.38
American car
32 miles/gal * 1.609 km/mile * 1 gal/(3.785 liter) = 13.6 km/liter
European car
12.7 km/liter
The American car gets better mileage.