In step iii, you are asked to construct a circle that literally touches all three line segments that form the triangle (without extending the sides of the triangle). Spoiler alert for step iv: this is called the incircle of a triangle. See this link for more details, but in general it should look like:
In step iii, you are asked to construct a circle that literally touches all three line segments that form the triangle (without extending the sides of the triangle). Spoiler alert for step iv: this is called the incircle of a triangle. See this link for more details, but in general it should look like: