PowerEdge T110 RAID 5 not rebuilding after HDD replacement

Hello,

I Have a PowerEdge T110 running Windows Server 2008 R2 Standard, and currently has PERC S300 running RAID 5 with three disks.

The RAID was running in degraded state, with DISK 2 (3rd in the array) showing bad.

I replaced the hard drive with a new compatible disk, initialized the disk for the PERC, and it shows as READY.

The RAID array does not, however, rebuild using the new disk. 

Please Help!