The same five team cards open the episode, with no episode number. Team Tang (Basket, pulse2010 and FriarNurgle) is still in the caves, and Basket is still on three and a half hearts from the skeleton in Episode 2.
The first one out
Chat opens with news: "Th3pooka hit the ground too hard." A fall has taken the first player out of the match, and a row of "gg" lines follows from around the server, BasketMC included. momofminers writes "awww and he had all those diamonds," and OjiiOtousan asks "can i have your diamonds?" A little later Th3pooka is back in chat: "ooooo i'm a ghoast that haunts you."
Diamonds by the lava
Basket finds a lava pocket and checks around it. "Oh yeah, diamonds. Nice." The ore sits in the wall right beside the lava. There is lapis too, and then "more diamond." The diamonds go into a diamond pickaxe, and water on the lava turns it into obsidian. "Alright, I have four obsidian." In chat, FriarNurgle earns the DIAMONDS! achievement.
The obsidian points toward an enchanting table, but the team never picked up sugar cane on the surface. "That's one thing we forgot to get while we were up top." There is also the border to think about. "There is still a shrinking border," and by one guess they are about 400 blocks from spawn, which does not sound bad yet.
A tree with no sky
Back at base, Basket breaks through a wall into the big room where the saplings from Episode 2 sit in a row of torches, with FriarNurgle standing among them. Basket uses bone meal on a sapling, and an oak grows right there in the cave. Chopping it earns BasketMC the Getting Wood achievement, three episodes into the match. Steel_Douglas writes "grats!" and BasketMC answers "thanks! :D".
Gold, then an apple
The game keeps stuttering. In chat, Scoti_Garbidis writes "that was the nether for shizzle." Then the gold starts to turn up. "Found some." "I got six." "That is some wicked luck." Basket smelts it, crafts a golden apple, and asks the team: "Should I eat the first apple?" The answer is yes. Yellow absorption hearts appear over the red ones, and Basket's health climbs to five and a half hearts.
More gold comes in from the ravine and the side caves, "Seven more gold," enough for another apple. The team talks over who should get it. Basket is still the lowest, and someone points out it could wait for "right before we go somewhere dangerous because of that absorption effect." For now the second golden apple sits in Basket's hotbar. The team also counts its diamonds, enough for a sword, and asks "Who's best at PvP?"
Up the ravine
The ravine above is full of creepers along the ledges, and the team works along it carefully, picking up a slime ball and more gold, 14 in all by one count. The talk turns to heading for the surface once day comes.
Near the end, the server posts "60 Minutes" and lists the players still in the match. There are fourteen now, and Th3pooka is not among them. The episode ends with Basket alive among the cave trees on five and a half hearts, a golden apple in the hotbar.