The formatting got a little messed up when I posted, so it's a bit unclear all right. I'll try to clarify.
I'm using the 2000 Reprint of the Nav book so that may explain the difference.
Basically you're given the following information,
For N(360) Steer 003
HDG 012T
Variation 8W
HDG(M) 020M
HDG(C) =?
So as I understand it, the question says, given the above information, determine the HDG(C).
Thanks for the help, I can only recommend more beer.