Angle In The Clock

The hour hand moves $0.5^\circ$ per minute. So at $3:16$ it travelled $[3(60)+16](0.5)=98^\circ$ .

The minute hand moves $6^\circ$ per minute. So at $3:16$ it travelled $16(6)=96^\circ$

So the angle formed (smaller angle) is $98-96=$ $\boxed{2^\circ}$ .