Each of the sides of a square S1 with area 16 is bisected, and a smaller square S2 is constructed using the bisection points as vertices. The same process is carried out on S2 to construct an even smaller square S3. What is the area of S3?
<spanclass=′latex−bold′>(A)</span>21<spanclass=′latex−bold′>(B)</span>1<spanclass=′latex−bold′>(C)</span>2<spanclass=′latex−bold′>(D)</span>3<spanclass=′latex−bold′>(E)</span>4