To understand the concept of octave and its relationship with frequency, let`s first define what an octave is. In music, an octave represents a doubling or halving of the frequency of a given note.

Given that the note has a frequency of 500 Hz, an octave higher than this note would mean doubling the frequency. So, to find the frequency of the note that is one octave higher than 500 Hz, we need to multiply 500 Hz by 2.

When we multiply 500 Hz by 2, we get 1000 Hz. Therefore, option 3 - 1000 Hz is the correct answer.

It`s important to note that an octave higher represents a higher pitch, but it is still the same note. For example, if we play a note with a frequency of 500 Hz and then play the same note one octave higher, it will have a frequency of 1000 Hz.