I know that I have Sephardic Jew in me, will I qualify for "Hispanic"?

Hispanic / Non Hispanic usually means Ethnicity, which generally means;

“An ethnic group or ethnicity is a population group whose members identify with each other on the basis of common nationality or shared cultural traditions.”

You have neither common nationality nor shared cultural traditions. So no. You are not Hispanic.

DNA, even if you had a lot more than 3%, defines Race. You don’t need it to become Hispanic. You can become a White Hispanic, which isn’t uncommon in South American countries.