Let the large circle \(E\) have center \(O\).
Both \(A\) and \(B\) have radius \(1\), and because each is inside the circle of radius \(2\), their centers lie on the circle of radius \(1\) around \(O\).
Fix \(A\). Let the angle between the centers of \(A\) and \(B\) be \(\theta\). Since \(B\) rolls uniformly around the circumference,
$$ \theta\sim \text{Uniform}(0,2\pi). $$
The distance between the centers is therefore
$$ d=2\sin\frac{\theta}{2}. $$
For two unit circles whose centers are distance \(d\) apart, their overlapping area is
$$ L(d)=2\cos^{-1}\left(\frac d2\right) -\frac d2\sqrt{4-d^2}. $$
Substitute \(d=2\sin(\theta/2)\). Put \(x=\theta/2\):
$$ L=2\cos^{-1}(\sin x)-2\sin x|\cos x|. $$
Hence the expected overlap is
$$ E[L] =\frac1\pi\int_0^\pi \left[2\cos^{-1}(\sin x)-2\sin x|\cos x|\right]dx. $$
Now,
$$ \int_0^\pi \cos^{-1}(\sin x)\,dx =\frac{\pi^2}{4}, $$
and
$$ \int_0^\pi \sin x|\cos x|\,dx=1. $$
Therefore,
$$ E[L] =\frac1\pi\left(\frac{\pi^2}{2}-2\right). $$
So the answer is
$$ \boxed{\frac{\pi}{2}-\frac{2}{\pi}} $$
square units.
Numerically,
$$ \boxed{E[L]\approx0.93418\text{ square units}}. $$
So the expected overlapping area is approximately \(0.934\) square units. For more information you can also check
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