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\frac{1}{4}-\frac{3}{16}
Reduce the fraction \frac{3}{12} to lowest terms by extracting and canceling out 3.
\frac{4}{16}-\frac{3}{16}
Least common multiple of 4 and 16 is 16. Convert \frac{1}{4} and \frac{3}{16} to fractions with denominator 16.
\frac{4-3}{16}
Since \frac{4}{16} and \frac{3}{16} have the same denominator, subtract them by subtracting their numerators.
\frac{1}{16}
Subtract 3 from 4 to get 1.