Solution:
Begin by sketching the original rectangle:
It is impossible to add a gnomon to the short side of a rectangle.
Solution: Since all circles are similar, anything that we can attach to original circle to form a new circle will be a gnomon to the original circle.
But when we tried attaching a gnomon to our 2 x 1 rectangle, we discovered that we couldn't attach a gnomon to the short side, and that if we tried attaching it to the long side, we had no choice over the size of the gnomon -- it had to be a 3 x 2 gnomon.
So in order for a rectangle to have a square gnomon, the square gnomon would have to attach to the long side of the original rectangle.