The common response to this is that MBR doesn't support drives larger than 2TB, like mentioned in the other answer
That's true but not entirely correct. The real technical limit is 232 - 1 sectors, since MBR uses 32-bit index to address the sectors. Therefore on old drives with 512-byte sector you'll be maxed at 232×512 = 2TB and for new drives using Advanced Format (AF, i.e. 4KB sector) you can have 16TB MBR drives!
I'm not sure if diskmgmt.msc can create big partitions on AF drives or not since it has many artificial hardcoded limits and falls pretty far behind on features as well as capabilities compared to 3rd party disk partitioners. You need to check if your disk format is AF and if it really is you can use a 3rd party solution to resize your drive
If it's not, don't fret yet. You can go even higher, up to nearly twice the above limit and have a multi-partition 4TB MBR disk as long as the last partition begins before the 2TB mark and doesn't last longer than 2TB. The technical explanation behind that is
MBR records partition locations in terms of the starting sector and the partition's length. Both of these are 32-bit values, so in theory you could use MBR on a 4 TiB disk, so long as all the space after the 2 TiB mark is in a single primary partition, or perhaps in a single extended partition, which could in turn hold many logical partitions. Such a configuration would be somewhat limiting, but it fits within the MBR framework
Working Around MBR's Limitations
Of course you need OS support for this, and also need a 3rd party disk partitioner instead of diskmgmt.msc. However Windows 7 and above do support those disks well, thus there should be no problem. To quote from Rod Smith's article above
To make a long story short, the only OSes that seemed capable of handling a partition that spanned the 2 TiB mark were Linux, FreeBSD, and Windows 7
In your case you just need to shrink the C: drive a tiny bit to make it smaller than 2048GB and create another partition on the remaining 1678GB space. Note that you can't have a single huge volume in this case, but at least you can use the whole drive
Since partitioning information is stored in the MBR partition table using a beginning block address and a length, it may in theory be possible to define partitions in such a way that the allocated space for a disk with 512-byte sectors gives a total size approaching 4 TiB, if all but one partition are located below the 2 TiB limit and the last one is assigned as starting at or close to block 232−1 and specify the size as up to 232−1, thereby defining a partition that requires 33 rather than 32 bits for the sector address to be accessed. However, in practice, only certain LBA-48-enabled operating systems, including GNU/Linux, FreeBSD and Windows 7 that use 64-bit sector addresses internally actually support this
Note that dynamic disks are completely different and irrelevant to the problem. They're the analog of LVM on Linux for things like software RAID, striping, spanning, online resizing...