Heston,
you need to read it again. Clause 3 is a relaxation of the rules of Clause 2. in English that means if you can comply with clause 3 (all three points on of which is IN sight of surface) then you can ignore clause 2. Otherwiese you must comply with 2. So if you are below 3000 feet and in sight of the surface than all you need is clear of cloud. But if you can't see the surface you have to be 1000 feet above the cloud with 5 km viz.