Time period of a simple pendulum is $T = 2\pi\sqrt{\frac{L}{g}}\ \Rightarrow g = \frac{4\pi^{2}L}{T^{2}}$ $\therefore\frac{\mathrm{\Delta}g}{g} \times 100 = \left( \frac{\mathrm{\Delta}L}{L} + 2\frac{\mathrm{\Delta}T}{T} \right) \times 100 = 1\% + 2 \times 2\% = 5\%$