The question is solved.
The error is taken as 0.01 because the side is given as 2.00 cm(ie, there are two digits after the decimal point) and nothing else is told. So, the least count of the instrument with which it was measured can be taken as 0.01 (for example if the least count was 0.001 cm, then the length would be given as 2.000 cm). Hence the error is taken as 0.01.