Step 1: Resistivity of a wire is given by:
\[
\rho = \frac{RA}{L}
\]
where $R$ is resistance, $A$ is area, and $L$ is length.
Step 2: For a wire of circular cross-section:
\[
A = \frac{\pi d^2}{4}
\Rightarrow \frac{\Delta A}{A} = 2\frac{\Delta d}{d}
\]
Step 3: Given percentage errors:
\[
\frac{\Delta d}{d} = 1%, \quad \frac{\Delta R}{R} = 2%, \quad \frac{\Delta L}{L} = 0.5%
\]
Step 4: Error in area:
\[
\frac{\Delta A}{A} = 2 \times 1% = 2%
\]
Step 5: Total percentage error in resistivity:
\[
\frac{\Delta \rho}{\rho} = \frac{\Delta R}{R} + \frac{\Delta A}{A} + \frac{\Delta L}{L}
\]
\[
= 2% + 2% + 0.5% = 4.5%
\]
Hence, percentage error in resistivity is $4.5%$.