Hi raghavkedia,
Yes fully charge your device
Unplug from power, turn off (if possible), allow to cool for 30 minutes
Put in freezer in ziplock bag with paper towel wrapped around 1/2 cup dry rice
Leave in freezer for 40 minutes
Remove from freezer and IMMEDIATELY start Restore process
If you still get Error (3), repeat 40 minutes in freezer, and, if possible, start Restore process with your device remaining in freezer (keeps the Flash chips cool a bit longer as the Restore process can take several minutes, and the Flash chips may get too warm to sucessfully erase, which is where the Restore process is failing on Error (3)).
If you still get Error (3) aftwr this second freezer attempt, and you have already visited the Apple Genius Bar, shown them this thread, and they still won't replace your device for no charge, hang in there and keep watching this thread for additional solutions to this issue.