A round tablecloth needs to cover a table with a diameter of 1.6 m. If an additional 20 cm of fabric is needed all around the edge, what is the new diameter and area of the tablecloth?

The original diameter of the table is $1.6 \text{ m}$.
The extra fabric added all around the edge is $20 \text{ cm}$.

Since the extra fabric is added all around the edge, it adds to the radius on both sides. Therefore, the diameter increases by twice the extra fabric amount.
Total increase in diameter $= 2 \times 0.2 \text{ m} = 0.4 \text{ m}$

New diameter = Original diameter + Total increase in diameter

The new diameter of the tablecloth is $\boxed{\text{2.0 m}}$.

1.2.2 Calculate the area of fabric required for ONE tablecloth in square metres.

The new diameter is $2.0 \text{ m}$.
Radius $r = \frac{\text{Diameter}}{2} = \frac{2.0 \text{ m}}{2} = 1.0 \text{ m}$

Using $\pi \approx 3.14159$:

The area of fabric required for one tablecloth is approximately $\boxed{\text{3.14 m}^2}$.