From what I remember reading............ about nearly exactly 5% elemental Iodine reaches saturation in PURE alcohol.
Interesting point regarding Lugols, KI is soluble in water, not alcohol and elemental Iodine is soluble in alcohol, not water. After they are both in solution the two solutions will mix completely (however not a true solution by definition)
I'm sure a more optimal mix is possible.
For right now I chose a 1% as that is where the 'real' stuff is most normally formulated. This levels the field of comparison to just one variable, that being the 'treated' vs. the 'untreated'