Estimating errors is quite subjective at A-level and even in 1st year undergrad. For a metre rule, it's generally accepted that you can "read" to the nearest two millimetres if the smallest graduations are centimetres, and you can read to the nearest 0.5mm if the smallest graduations are millimetres.
Your "percentage error" is the fraction that the estimated error makes up of your reading.
So let's go with the example of being able to read to the nearest 2mm. If I measure the length of my band to be 420.0mm, then the reading could actually be anywhere between 419mm and 421mm. So we say the reading is 42mm +/- 1mm.
As a percentage error, this is +/- (1mm/420mm) * 100 = +/- 0.2%