Lost disk space??

I have a computer here with Windows 95 version A. 3GB Hard Drive. It is formatted and FDISK shows it as FAT16. Total disk space is 3016MB and C: drive is only 2047MB, I deleted a Extended Dos partition and Logical drive D: from the system which was 969MB. Now the system still only shows C: as 2047MB. Is this because of not being in FAT32? Or is there another problem. Josh Miller