High res logo on a low res video is becoming low res as well.

[shurpee]

Hi, I am working on a fairly low res video. I've had to make my extremely high res (and large) logo at 3% scale to make it fit this video. However, both my subtitles and my logo become low res on the video once it gets dragged onto the sequence. Why is this happening? Help!

I've attached a screenshot of my sequence settings if that helps. 

[Ann Bens]

Why is that happening? Because your timeline is SD which is as you already stated low res.