This game is still protected by copyright, so I’m afraid we can’t give support for it here. It’s still available for purchase on Steam for example: https://store.steampowered.com/app/500810/Arcanum_Of_Steamworks_and_Magick_Obscura/
As a general rule for installing games in Win95, you mount the image containing Windows as drive C, the image with the game ISO file as drive D, then boot into Win95, mount the image file as cdrom drive with a Virtual Clone Drive or something similar, and run the install from there. If you’re running low on disk space, you can install Win95 to a 2GB image as well, and install the game to drive C, as there should be plenty enough space available there. It’s easiest to do all this on a PC, then transfer the C and D img files to your phone.