Please give solution and explain why. Thank you!

An inspector inspects large truckloads of potatoes to determine the proportion p in the shipment with major defects prior to using the potatoes to make potato chips. Unless there is clear evidence that this proportion, p, is less than 0.10, he will reject the shipment. He selects an SRS of 200 potatoes from the over 5000 potatoes on the truck. Twelve of the potatoes sampled are found to have major defects. Using this estimate for p, what sample size is required to achieve a margin of error of 3% with 95% confidence?

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