Using CO2 or N2 would risk asphyxiation of occupants after the fire was out.
If the fire was allowed to burn with no abatement, everyone in the room would die or open the door and spread the fire to the rest of the building floor first and other floors next.
Not unless you have a whole lot of extra gas. If there were 100 gallons of extra gas (which would mean there was more than twice as much gas as is needed to displace the 80 gallons of liquid) that would be about 13 cuft. The room you described is 800cuft. A 1.6% extra N2 concentration would be a total non-factor; a 1.6% CO2 concentration could be toxic with extended exposure in the absense of other ventilation, but again that shouldn't be a factor.
If it weren't for the DuPont-led environmentalists, freon would probably be a really good propellant, but unfortunately its replacements wouldn't be nearly as good here.