It is a single tray printer unless you have the optional addition which gives you ONE extra tray. Settings are not changed via Printer DRIVER Settings. DEVICE Settings.
This is a single tray machine with an additional 'straight pass' slot for card stock. As far as I see there is no 'Tray 3'. It is an updated version to my HP 2015d. Your settings are guided from Windows settings.
Printer - Settings - HP Laserjet - Manage - Printer Properties - Device Settings tab. Set to Letter from the drop down list.
You can also use 'Printer Auto Select'.
Also make sure you Word Processing program (MS Word) has it set correctly in Page Setup.
https://support.hp.com/ca-en/drivers/selfservice/hp-laserjet-1320-printer-series/410622
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