Answer
$3\frac{5}{8} \ in, 3\frac{3}{8} \ in, \frac{1}{4} \ in$
Work Step by Step
The upper limit is the measurement + tolerance, that is,
$$
3\frac{1}{2}+\frac{1}{8}=3\frac{5}{8} \ in
.$$
The lower limit is the measurement - tolerance, that is,
$$
3\frac{1}{2}-\frac{1}{8}=3\frac{3}{8} \ in
.$$
The tolerance interval = upper limit - lower limit, that is,
$$
3\frac{5}{8}-3\frac{3}{8}=\frac{2}{8} \ in=\frac{1}{4} \ in
.$$
