Sounds like a homework problem to me (
http://www.experts-exchange.com/Community_Support/General/Q_10154559.html?sfQueryTermInfo=1+homework), so let's use the Socratic method:
- If there are three bits for the sequence numbering, how many possible sequence numbers can each packet possibly express?
- Once you know how many sequence numbers are available, can you tell how many packets can be outstanding at one time?
- Based on the number of outstanding packets and the number of bytes per packet, how much memory is therefore needed to hold all of that data in a buffer?
- Is the ACK field any different than the sequence number field?
