Rule of thumb is .001 for each inch of cylinder bore. 3.5 bore, .0035 clearance. That being said, an old motor that wont see a lot of miles can get by with .010 without blowing smoke if you put new rings on that piston. Clean out the carbon in the grooves, use sandpaper and kerosene if you don't have a glaze buster or a hone. Then clean very well.