Answer
$\space |\space Error| \lt 1.25 \times 10^{-5}$
Work Step by Step
Recall the Binomial series for $\sqrt{1+x}=1+\dfrac{x}{2}-\dfrac{x^2}{8}+\dfrac{x^3}{16}-.....$
By the Alternating Series Estimation Theorem, the error can be computed as:
$|Error| \lt |\dfrac{-x^2}{8}| $
$\implies \space |Error| \lt \dfrac{(0.01)^2}{8} $
Thus, $\space \implies |\space Error| \lt 1.25 \times 10^{-5}$