500 gallons that have 3% particulate contamination would have:
500 * 3% = 15 gallons of contaminants
For that oil to have only 1% contamination, there would have to be a volume to all of the oil 100 times that of the contaminants. That would be:
15 gallons * 100 = 1500 gallons
Therefore, the amount of pure oil that needs to be added is:
1500 gallons - 500 gallons = 1000 gallons of pure oil