Do you own a hacksaw and a drill?
My suggestion, if you want to do this correctly, is to modify that carrier a bit.
Pick up a piece of 1.25" square bar and some bolts.
Cut the 2" bar off shorter from the front of the rack.
Drill+bolt the 1.25" square bar to the BOTTOM of the remaining 2". This should lift it up by about 1.5", which may be just enough to clear that exhaust tip.
If you want/need to go up even higher, you have a couple of options, one is a DIY option, the other is a bit fancier. The DIY option involves a piece of 4x4 lumber bolted in between the new 1.25" and the 2". It will be perfectly safe, but look a bit funny -- maybe paint it black. The fancier option will involve you finding someone who has an acetylene torch (lots of people have torches... mechanics, construction companies who work with concrete+REBAR, machine shops, etc.) and add a couple of *bends* to the 1.25" bar at the front.
For bolting the 1.25" bar to the 2", you can just drill through both layers of the 2" and use about 4" bolts and some big washers.
If you don't have a drill *PRESS* (i.e., just a handheld drill), drilling through the solid 1.25" bar may be fun. Oil the drill bit with cutting oil frequently, don't spin the drill too fast, lots of pressure, keep it steady. Home depot sells cutting oil. Failing that, ANY oil is better than drilling dry.
You will need to drill TWO holes to bolt the 1.25" bar to the 2" bar, and one for the hitch pin.
I suggest trying to find a metal *recycler* and get yourself a piece of used 1.25" bar. Probably cost you $3. These places are usually a bit beyond the outskirts of town and have fences or rows of trees hiding the property. Once you get into the place, there will be heaps... *MASSIVE* heaps 50 feet high, of metal. For small time (i.e. hobbyists), usually you just go and find the piece you need, and bring it to the guy in charge. He'll eyeball it and give you a number. You pull some change out of your pocket and the transaction is done.