Think about it from the perspective of the center of the small coin.
Yes, its circumference is 1. If you roll it on a flat surface for three inches, the center travels 3 inches, in a straight line
But think about how far the center is traveling when it goes around the big circle. The center is now traveling in a circle, and that circle's circumference has changed.
Instead of moving in just a straight line, equal to the circumference of itself 2*pi*r = 1, the center is now moving in a circle with a circumference of 2*pi*(R+1) = whatever (more than 1). That is where the extra movement is coming from.