if #1 stone's about 3/4", yes,,, but it also needs silt fabric for trench lining, NOT a sock which'll clog eventually in hi silt conditions,,, bldg codes only require a 6mil (IF i recall correctly) 'dampproofing' coat', NOT waterproofing,,, as ext water levels rise, you can get int leakage thru the walls &/or cove,,, all the above being said, excavation & replacement's the only answer,,, BE CERTAIN the drains ' run to daylight ',,, its really simple - water runs downhill,,, if it can't, you need sumps & pumps to force it away from the foundation.
be especially vigilant as most home warranties only cover the 1st year of basement water leak claims.