1. **Problem:** Your vessel is on course 001° pgc and the charted value of the range of lights is 359° I. Find the gyro error. 2. **Formula and rules:** - Gyro error = Gyro heading - True heading - PGC (per gyro compass) and I (true or geographic) bearings are related by gyro error. 3. **Given:** - Gyro heading = 001° - True heading = 359° 4. **Calculate gyro error:** $$\text{Gyro error} = 001^\circ - 359^\circ = 2^\circ$$ 5. **Determine direction:** Since gyro heading is greater than true heading, the gyro error is East (E). 6. **Answer:** The gyro error is 2° E. **Final answer:** b. 2° E