Perc H710 problem Rebuilding Array

I have a PowerEdge T320 with a Perc H710. It has 3 600GB hard drives setup in a Raid 5. Drive 0 started showing predictive failure state. I replaced the drive and the rebuild did not automatically start. So I started it manually. Rebooting the server pressed F2 to get into Setup. I removed Drive 0 from the array and added the new drive and initiated the rebuild. The rebuild finished (after 8hrs). It still shows degraded and when I boot into Server 2012 and go into Disk Management it brought the new drive in as a new partition. I'm thinking I should have added the new drive as a Hot Spare.

Can I go back into Setup, remove Drive 0 and add it as a Hot Spare and initiate the rebuild?

Chris