Thanks for the screenshots, (and thanks to the others joining in to help).
It looks to be those "System volume information" files that are causing the fragmentation. (All the red squares).
They will be either open or protected so that Defraggler can't work with them.
So to start with; yes you can delete those old restore points, that may/should remove some of those System Volume files.
You can do it from CCleaner, or the next step here (Disc Cleanup) should do it.
Next I would run the Windows built in Disk Clean-up with 'Clean up system files' selected. That can take some time cleaning up the system files.
Just in case you've not used Disc Cleanup before:<a href="http://%20https://www.dummies.com/computers/pcs/how-to-use-disk-cleanup-in-windows-7-and-vista/" rel="external nofollow"> https://www.dummies.com/computers/pcs/how-to-use-disk-cleanup-in-windows-7-and-vista/</a>
That should further reduce the number of System Volume files.
Next I would do a "Boot time defrag" which can defrag system files before Windows loads.
In the menu a the top left of Defraggler select: Settings>Boot Time Defrag>Run Once
It should give you a prompt asking if you want to restart.
Restart your machine and Defraggler will run before Windows loads to defrag the system files that it can. (Because Windows isn't yet loaded you'll only see some lines of text).
Once Windows has loaded try a Defraggler analyze again to see what it says the percentage fragmented is now.
Come back and let us know how it went.
That all takes a while to do, but once you can get things cleared up and defragged keeping it that way is easier.
(PS. You can change the settings so that it doesn't keep as many restore points in future, but let's try and get things cleaned up first).