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RAM available

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Can somebody explain me on the following.

 

I have an iMac model late 2012 running on OSX Mavericks, RAM installed is 32 GB. As a guest system I am using VMWare Fusion 6 with Windows 7 Ultimate. I also assigned 16 of the 32 GB RAM to Windows 7. What I do not understand now is this. When I click on the system information in Windows 7, it is telling me " installed memory 16 GB (3 GB usable)". What does this mean?

 

Grateful for any replies.


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