Yes, you can stay outside for up to 1094 days. If you look at the PR renewal application, you see that only if you have been outside Canada for 1095 days or more in your first 5 years as a PR you have to explain your absences.
Also keep one thing in mind, even though they say that on the form and you haven't been outside Canada more than that, they also want you to meet the requirements of staying in Canada for 730 days in your first 5 years (and any 5 year period after that). Hence if you have been outside Canada for 1094 days but haven't yet stayed in Canada for 730 days because you are applying a little before your 5 year anniversary, they may be more likely to send your application to residency questionnaire which means it will take much much longer.
It is therefore better if you have been outside Canada that long to wait until you have 730 days in Canada before you apply, even if it means letting your PR card expire or applying only just before it expires.