This encoding appears to be URL encoding (not UTF-8 encoding). You can unencode it with a number of different methods in .NET:
HttpUtility.UrlDecode("Poluci%C3%B3n"); // returns "Polución"
Uri.UnescapeDataString("Poluci%C3%B3n"); // returns "Polución"
System.Text.Encoding.UTF8.GetString(byteArray).c3b3is the hex representation in UTF8 for theU+00F3unicode code point (ó).