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Let the distance between Peter's (hereafter referred as P) and Rhea's (hereafter referred as R) be D.
When P and R meet for the first time, P has traveled 500 miles.
In that case, R has traveled (D - 500) miles.
=> Speed of P / Speed of R = 500 / (D - 500) (1)
When P and R meet for the second time, P has traveled (D - 500) + 300 miles
Now, R has traveled (500 + D - 300)
=> Speed of P / Speed of R = 5 / (D - 5) (2)
Equating (1) and (2)
500 / (D - 500) = (D - 2) / (D + 2)
D = 1200 Miles.