96.8 per cent is a statement about area, and the other 3.2 per cent is everything the detector saw and did not assign to your peak. Read it as 96.8 of every 100 units of peak area at whatever wavelength was used, not as 96.8 per cent of the mass in the vial. With the chromatogram attached you can at least see how the figure was produced, which is the difference between a measurement and a claim. What it still does not tell you is content: how many milligrams are actually there.
Worth being precise here: understanding purity requires separating the chemistry from the method from the reporting convention, and the three are not independent.
The fraction of your main peak that is actually your target versus isomers, fragments or related sequences is invisible without complementary identity testing.
To be exact about it, detection wavelength matters because 214 nm sees the peptide backbone while 280 nm sees only aromatic side chains — so truncation impurities lacking a tryptophan are invisible at 280 nm.
The caveat is that purity without identity is only half an answer — a high purity does not mean the peak is actually what you think it is.
The practical summary: ask for the chromatogram and the method, and ignore the headline number until you have both.