1/4 watt 1% or 5%? Help me!

Ohms law will tell you the requirements for resistors min.power rating.

Voltage will not exceed the supply rail voltages, so for DC conditions P=V^2/R. If your resistors are 1/4W and your supply rails are +/-18VDC, any resistor value with at least 1296 ohms will not exceed the 1/4W power rating for DC conditions. For resistors in the audio path assume factor SQRT(2) for RMS, so any resistor value with at least 916 ohms will not exceed the 1/4W power rating for AC conditions. All resistors in this circuit exceed these values, so 1/4W rating is sufficient, except the two 22 ohm resistors at th elast output stage, where a connected faulty/shorted xlr cable would require 0.76W rated resistors for these two parts, assuming you fit NE5532 opamps that will not deliver more than 60mA in a output shorted condition.

Allowed resistor tolerances depend on application. For frequency setting resistors, the tolerance number might be the same percentage off number for your target frequency. This might be more or less important for you. For cmrr sensitive parts of circuit (FI the 10K resistors at the balanced line receiver) you want it as close matched as possible, where same value is more important than absolute value.