I am a bit confused on how to interpret permutation cycle notation. I am going by the Wolfram definition. My initial interpretation of $(431)(2)$ was "4 moves to position 3, 3 to position 1, 1 to 4, 2 remains in place". which would leave me at ${3, 2, 4, 1}$ which apparently is incorrect, since the solution is ${4, 2, 1, 3}$. So it would appear that the correct way to read $(431)(2)$ is "element 4 is replaced by 3, 3 by 1, 1 by 4, 2 remains in place".
I am also unclear on the definition of a cycle, which seems to mean a subset of elements which are permuted. Wolfram says, "any rotation of a given cycle specifies the same cycle", but I do not see why $(413)(2)$ cannot be considered a cycle of $(431)(2), (314)(2), (143)(2), (2)(431), (2)(314), (2)(143)$. The elements lookthe same, only permuted.
Your initial interpretation of $(123)$ would seem to suggest that it sends $1$ to the middleman $2$ and then to the final destination of $3$. This would make the "middleman" $2$ completely superfluous; what's the point of having a midway station if it doesn't have any consequence at all?
No, $(123)$ means that $1$ ends up at $2$. It does not go any further. And $2$ ends up at $3$. And $3$ ends up at $1$. That is, if $\sigma=(123)$, then $\sigma(1)=2$, $\sigma(2)=3$ and $\sigma(3)=1$. Why is this called a "cycle" you may ask? One thing to notice is that if you start in any particular place, say $1$, then upon repeated application we get $\sigma^0(1)=1$, $\sigma^1(1)=2$, $\sigma^2(1)=\sigma(\sigma(1))=\sigma(2)=3$, and then back to $\sigma^3(1)=\sigma(\sigma^2(1))=\sigma(3)=1$ back where we began. We do go on a "round trip" through the numbers seen in the cycle notation, in the order they're listed, upon repeated application of $\sigma$.
An equivalent way of thinking about this is as follows: if we list out the numbers from the cycle notation on a circle in the order they appear, applying $\sigma$ to the numbers is the same as rotating.
Now, the numbers appearing in the notation $(132)$ are the same as those appearing in $(123)$, however they do not denote the same permutation. The first takes $1$ to $3$, whereas the second takes $1$ to $2$, so they cannot be the same. Yet, $(231)$ also looks different than $(123)$, and we can check that they represent exactly the same function (permutation) of the set $\{1,2,3\}$: each sends $1$ to $2$ and sends $2$ to $3$ and sends $3$ to $1$, so the notations $(123)$ and $(231)$ both specify the same exact permutation. Similarly, $(312)$ is another way of specifying this same permutation.
In general, if you take the numbers that appear in a cycle's cycle notation and, well, cycle them as they appear, you will not be changing the permutation that is being denoted. However if you permute the numbers that appear in a cycle notation arbitrarily you will not, in general, end up with the same permutation you started with. We already observed $(123)\ne(132)$ for instance.