The area (A) of a rectangle is given by the formula:

$$A = L \times B$$

where (L) is the length and (B) is the breadth.

When small percentage errors are involved, the percentage error in a product is equal to the sum of the percentage errors of the individual quantities.

1. Error in Length

   $$\frac{\Delta L}{L} = 1\%$$

2. Error in Breadth

   $$\frac{\Delta B}{B} = 1\%$$

3. Error in Area

   $$\frac{\Delta A}{A} \times 100 = \left( \frac{\Delta L}{L} \times 100 \right) + \left( \frac{\Delta B}{B} \times 100 \right)$$

Therefore,

$$\text{Percentage Error in Area} = 1\% + 1\% = 2\%$$