@Suiseiseki Nope. Correct answer follows.
* Being 99% water means it was 1 part solid to 99 parts water.
* To be 98% water, it would need to go down to 1 part solid to 49 parts water.
* Since it didn't lose any solid matter, it needs to lose 50 out of 99 parts water it had.
* Therefore the answer is that it lost 50.5050...% of its water.
(And assuming it was 99% water _by mass_ it means it lost exactly 50% of its total mass, since it lost 50 parts out of 100 total.)