Answer
$216\;hp$.
Work Step by Step
Displacement is proportional to the horsepower.
Let the required horsepower is $x$.
We can write.
$\Rightarrow \frac{2.0\;L}{270\;hp}=\frac{1.6\;L}{x}$
Cross multiply.
$\Rightarrow 2x=270\times 1.6$
Divide both sides by $2$.
$\Rightarrow x=\frac{270\times 1.6}{2}$
Simplify.
$\Rightarrow x=216\;hp$.