The rectangle must lie within the annulus. The tightest configuration (the one with the minimum radius) is where the length of the rectangle is tangential to the inner circle (touching the midpoint of the rectangle’s length) and the opposite two vertices lie on the outer circle. It will easier to see when you draw it out.
For ease of computation, define the centre of the annulus to be the origin and its point of contact with the rectangle to be on the y-axis.
This point of contact has the coordinates
The coordinates of one of the opposite vertices of the rectangle is
This point should satisfy the equation
You can then solve to find the minimum value of inner radius.