AD620: AC Input Generating DC Output
With a single 5-volt supply, you have barely enough voltage to operate.  The maximum allowed on an input is Vs - 1.2 or in your case 3.8 volts. the minimum voltage is -Vs +1.9 or 1.9 volts.  Therefore your input voltage (both pins) must stay within this range.  The output must be between 1.1 and 3.8 volts (2.7 volt swing) as well, so you don't have enough swing for your output p-p voltage of 2.9 volts at 1.02 volt rms.