192.168.0.100 is what is doing the real routing then for 192.168.2.0/24. If you follow the path, from a 192.168.0.20 machine to 192.168.2.20 say, it goes from 192.168.0.20, to the default gateway, 192.168.0.1 which checks the route table and sends it to 192.168.0.100 (which is on the same network as E0 so you're right about routers routing between networks.), then 192.168.0.100 must know where 192.168.2.0/24 is. All the router is doing is routing 192.168.2.0/24 traffic to the Linux box first. Its not that the router knows where 192.168.2.0/24 is, its just sayin 192.168.0.100 knows so go there first.
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