How 2-7/32″ is converted to cm or a simpler form?

2-7/32 = (2 + 7/32) inches = 2.21875 inches

Then you can multiply/divide by whatever conversion factor is appropriate for the desired dimension.

Since 1 inch = 2.54 cm,

2 7/32 inches = 2.21857*2.54 = 5.635625 cm (or 5.64 rounded to nearest 100th)

In general, the fractional part of fractional inch measurements are converted to decimal form and added to the whole number inch:

1 1/8 inch = 1.125
1 3/16 = 1.1875
1 1/4 = 1.25
etc.

Typically, inch dimensions expressed in fractional notation will have a denominator that is some power of 2: 1/2, 1/4, 1/8, 1/16, 1/32, 1/64, etc. Everyday use of fractional notation rarely uses a denominator larger than 64. When precision requirements are greater than that, the dimensions will be expressed in decimal form.

Also, typically, fractional notation is most common in the architectural and building trades in the US. Most other applications of inch dimensions, especially in higher precision machining operations, use decimal inches