Ciara is making a new dance outfit. She needs 2 1/2
yards of fabric for the shawl. She needs 1 3/4
yards of fabric for the dress. If she has 3 yards of fabric, how much more does she need?
To find how much more fabric Ciara needs, we need to add the amounts of fabric needed for the shawl and the dress: 2 1/2 yards + 1 3/4 yards = 4 1/4 yards
Thus, Ciara needs 4 1/4 yards of fabric in total.
To find how much more fabric Ciara needs, we need to subtract the amount of fabric she already has from the total amount she needs: 4 1/4 yards - 3 yards = 1 1/4 yards
Therefore, Ciara needs 1 1/4 yards more fabric. Answer: \boxed{1\frac{1}{4}}.