Episode 3 starts where Episode 2 left off, underground, with furnaces burning. Basket and Jadelf are both still in the match, and the plan for this episode is right there in its title: turn every piece of iron they can find into armor.
Furnaces everywhere
The team works its way along a staircase dug through the stone, setting down furnaces as it goes and leaving some of them behind. Charcoal goes in, iron comes out, and chat posts that BasketMC has earned Acquire Hardware. Basket types a one-word reply: "winning."
Basket started the episode with only an iron chestplate. A few minutes in, the armor bar grows: iron leggings are on.
A look at the sky
The two dig back up into daylight and come out in a forest clearing, with pigs wandering through the tall grass. They do not stay long. A ravine nearby has water running along the bottom, and they go back underground from there.
bjaydubya goes down
Basket is in the middle of typing a note to the server, "FYI, also the border is not shrinking at sundown," when a new line drops into chat: "bjaydubya was slain by Zombie." Finalflame, Basket, thepigglesworth, RandomBacon74 and Jadelf all answer with "gg." Then the map's warning comes back, "Soul Crusher will wake in 2 minutes!", and two minutes later "Soul Crusher is coming!" with the border shrinking 150 blocks over 5 minutes.
That leaves MomofMiners without a partner. "I've never played by myself before," MomofMiners writes. "anyone wanna join me?" Finalflame answers, "*sharpens blade* sure!" Jadelf asks, "do you have cookies?" and MomofMiners replies, "I do have cookies," and then, "and pie."
Full iron
Back in the tunnels the iron keeps coming. Basket lays four ingots on the crafting grid and gets iron boots, and a helmet follows. By about thirteen minutes in, the inventory shows a full set of iron armor: helmet, chestplate, leggings and boots.
The Tab list at that point shows ten players with health and four without: Frank_n_Honest, Scoti_Garbidis, Klaus_Endomere and now bjaydubya. RandomBacon74 and pikerize are both down to a few hearts.
Lapis and lava
The digging goes on through stone and gravel. Basket finds redstone and then a seam of lapis lazuli, the blue ore used for enchanting. Chat stays on MomofMiners, who writes, "i'm so lonely :(" and later, "I made a diamond chestplate and named it BJ."
Near the end the tunnel opens onto lava. Jadelf stands by a lavafall, and a little farther on a wide pool of it glows across the cave floor. MomofMiners adds one more line: "I shall remember my partner fondly."
Basket sets up a crafting table beside the lava and makes a bucket out of three iron ingots. The episode ends with Basket and Jadelf both alive, deep underground, Basket mining redstone at the edge of the lava pool.