Step 1: Water distribution on Earth.
Water covers about 71% of the Earth's surface, but only 3% of this is fresh water, which includes potable water.
Step 2: Potable water percentage.
Out of the 3% of fresh water, only a fraction is accessible and clean enough for human consumption, but 3% is the total proportion of water on Earth that can be considered potable.
Step 3: Conclusion.
Therefore, the correct answer is that 3% of the Earth's total water is potable.