No it can't be 0.25, that is too high up.

The strip is 3 inches, the Velcro is 2 inches.

Thinks - have I ever come across 2inch wide Velcro? No. Never have. The normal stuff is maybe 1 inch.

The advice is to sew the waist band 3/4 to 1 inch from the edge, the Velcro has to be below that level.

Maybe the Velcro is only one inch wide and it will happily sit on the strip just as shown in the drawing?

That makes 1.25 inches at the top, 1 inch of Velcro and 0.75 inches underneath - total of 3 inches.

Now - will go and Google for 2 inch wide Velcro.