My attempt at the question:
$\tau^{-1} =$ $$m\mapsto m-1\mapsto m-2\mapsto \cdots 2\mapsto 1$$
So starting from
$$1\mapsto 2\mapsto 3\mapsto 4\mapsto \cdots \mapsto m-1\mapsto m$$
Apply $\tau^{-1}$
$$m\mapsto 1\mapsto 2\mapsto 3\mapsto \cdots\mapsto m-2\mapsto m-1$$
Apply $\sigma$
$$m\mapsto 2\mapsto 3\mapsto 4\mapsto \cdots\mapsto m-1\mapsto 1$$
So $\sigma\tau^{-1}= (1,m)(2)(3)\cdots(m-1)$
I'm very new to abstract algebra and am not sure how to incorporate the given fact that $3 \le m\le n$
You have done it right.
The algebra here, fortunately, is not abstract. As $\tau$ moves all numbers forward by 1 step (except the last which is sent to 1) $\tau^{-1}$ moves backward by 1 (except . . .).
Now $\sigma$ again moves forward. So $\sigma\circ \tau^{-1}$ should largely restore everything to its place, except the numbers at the edge. Pay attention to those edges. So this is not really abstract as it can be described with words, rather than symbols. Here the number $n$ plays no role.