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The correct formula to find the area of a circle is A = πr^2, where r is the radius of the circle.
Given that the diameter of the circle is 21 mi, we can find the radius by dividing the diameter by 2:
radius = diameter/2 = 21 mi/2 = 10.5 mi
Now we can substitute the radius into the formula and calculate the area:
A = 3.14 * (10.5 mi)^2
A = 3.14 * 110.25 mi^2
A ≈ 346.19 mi^2
Therefore, the correct answer is "346.19 mi^2".