Hello,
If you want to use 16MHz external clock source as the source for the FLL you should select the "Auto select" in the Ref. clock divider and DCO mode properties. The Processor Expert select the best divider and multiplier to set the required Internal bus clock. For example you can set 24MHz internal bus clock. See the following screenshot:

In the case of 24MHz bus clock you can use 115200 buadrate of the SCI and also PWM at 125kHz. See also the attached project.
Best Regards,
Marek Neuzil