Each Mark on the vernier represents 1/8 of each Mark on the major scale, which are .0625. So the vernier represents .0078 inch.
You are past two of the .0625 Marks on the major scale, so count up to the line on the vernier that comes closest to aligning with a mark on the major scale. That would be 6 lines up, or .0468. Add that to tour two major marks, (.125), and you get .1708 inch.