Let G=(V(G),E(G)) be a simple connected unweighted graph. A set R⊂V(G) is called a fault-tolerant resolving set with the tolerance level k if the cardinality of the set Sx,y={w∈R:d(w,x)≠d(w,y)} is at least k for every pair of distinct vertices x,y of G. A k-level metric dimension refers to the minimum size of a fault-tolerant resolving set with the tolerance level k. In this article, we calculate and determine the k-level metric dimension for the circulant graph C(n:1,2) for all possible values of k and n. The optimal fault-tolerant resolving sets with k tolerance are also delineated.