64 bit Machine 32 bit Excel Using SQl Server Management Studion V17
You'll need to use a more recent driver since the excel file was created in Excel 2016. 

Install the following driver on the machine running the SQL Server Database Engine: Microsoft Access Database Engine 2016 Redistributable (64-bit)

https://www.microsoft.com/en-us/download/details.aspx?id=54920

After the driver is installed, open up SSMS and navigate to:

Linked Servers -> Providers -> right-click Microsoft.ACE.OLEDB.16.0: Enable "Allow In-Process"

From here, you can use the Microsoft.ACE.OLEDB.16.0 in your OPENROWSET command.
I prefer to setup linked servers to these files, as follows:

EXEC sp_addlinkedserver @server='YourLinkedServerName',
                        @srvproduct='Excel',
                        @provider='Microsoft.ACE.OLEDB.16.0',
                        @datasrc='C:\File1.xlsx'


Then you can query the Excel file using the 4-part Linked Server syntax (the DB name and schema part are shorthanded here with ...):

SELECT * FROM [YourLinkedServerName]...[Sheet1$]