We know time period of simple pendulum
\(T = 2 \pi \sqrt {\frac {l}{g}} = 2 \pi l ^{\frac {1}{2}}g ^{-{\frac {1}{2}}}\)
\(\Rightarrow \frac {\Delta T}{T} = \frac {1}{2} \frac {\Delta l}{l} - \frac {1}{2} \frac {\Delta g}{g}\)
\(=\frac {1}{2} \times \frac {4}{100} - \frac {1}{2} \times \frac {2}{100}\)
\(=\frac {2-1}{100} = \frac {1}{100} = +1 \% \,\,\text {(increase)}\)
Hence time period will increase by 1%.