Indicate whether this statement is true or false with proper explanation.

"Freddie purchased and lived in his house at 25 Jansey street Greenslopes from 1 July 2015 to 30 June 2020. During the time of ownership, Freddie modified the garage and one bedroom to operate his business of screen-printing environmental messages on T-shirts. The space used for the business was equivalent to 3% of the total floor area of the home. Freddie sells the house and makes an intial capital gain of a $100,000. Freddie will be able to claim main residence exemption on total value of the sale of the house."