Step 1: Recall Calvin cycle reactions.
In Calvin cycle, CO$_2$ fixation is followed by reduction phase.
Step 2: Identify the conversion step.
1,3-diphosphoglyceric acid (1,3-diPGA) is converted into phosphoglyceraldehyde (PGAL).
Step 3: Role of NADPH.
This conversion requires NADPH, which donates hydrogen and electrons. Hence, the reaction is a reduction.
Step 4: Conclusion.
Therefore, PGAL is formed by reduction of 1,3-diPGA.