If cut is 5", that will finish at 4.5"
Divide 5 by 2 = 2.5, plus .25 seam allowance, to cut 2.75" strips.
or maybe more confusing but depends on how your mind works.
Divide 4.5 by 2 = 2.25 + seam allowance (.5 which is .25 on each side) to cut 2.75" strips.