For this problem, it is probably best to FIRST find the combined rotational inertia about the y0 axis that goes through the center of mass...AND THEN, use the parallel axis theorem to translate the entire thing to an offset to the y1 axis.
The y-axis rod is infinitesimally thin. It contributes zero to the rotational inertia about the y0-axis.
The x-axis rod is rotated perpendicular to its length, and so is the z-axis rod. These each contribute 1/12*m*L^2
Hence, the answer for the total rotational inertia ABOUT THE CENTRAL y-axis is:
Iy0 = 1/6*m*L^2
OR, if we want to express it in terms of total mass (capital M), realize that:
M = 3*m
OR
m = M/3
Thus:
Iy0 = 1/18*M*L^2
Now, we need to use the parallel axis theorem to translate FROM the center of mass to the edge point of the x-axis rod. We are translating by distance d = L/2.
NOTE OF CAUTION: when using the parallel axis theorem, it is ONLY valid if one of the points involved is the center of mass. The way that it is written in the textbook, it is written for translating to an axis parallel that is FROM the center of mass. You can algebraically reverse the formula to go TO the center of mass. BUT, don't just use it to go between any arbitrary points.
Use of the PAT:
Iy1 = Iy0 + M*d^2
Thus:
Iy1 = Iy0 + M*L^2/4
Iy1 = 1/18*M*L^2 + M*L^2/4
Factor out M*L^2:
Iy1 = M*L^2 * (1/18 + 1/4)
Add the fractions:
1/18 + 1/4 = 11/36
Thus:
Iy1 = 11/36 * M*L^2
OR, as they want you to express it, in terms of individual rod mass:
Iy1 = 11/36*(3*m)*L^2
Conclude:
Iy1 = 11/12 * m*L^2