One-eighth of an inch.
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-7/8
2 1
one eighth inch 1/4 x 1/2 = 1/8
3 inches to the nearest inch and 3 inches to the nearest half inch both refer to a length not less than 2.5 inches and less than 3.5 inches. 3 inches to the nearest quarter inch refers to a length not less than 2.75 inches and less than 3.25 inches.
For a quarter inch, it .25''