A set or reset is easiest done with an if without else.
I1 = digitalRead(Input1);
I2 = digitalRead(Input2);
I3 = digitalRead(Input3);
if (I1 && !I2) Q1 = 1;
if (!I3) Q1 = 0;
digitalWrite(Q1, Output1);
If you want to simulate a plc, remember to first read all your inputs, then do your networks and in the end write your outputs...