UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-21242

Nuveen Quality Preferred Income Fund 3

(Exact name of registrant as specified in charter)

     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)

Kevin J. McCarthy—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)

Registrant’s telephone number, including area code:      312-917-7700     

Date of fiscal year end:        12/31      

Date of reporting period:    3/31/2007   

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

TABLE OF CONTENTS

	Item 1. Schedule of Investments
	Item 2. Controls and Procedures
	Item 3. Exhibits
SIGNATURES
Certification

Item 1. Schedule of Investments

Portfolio of Investments (Unaudited)

Nuveen Quality Preferred Income Fund 3 (JHP)
March 31, 2007

Shares		Description (1)	Coupon		Ratings (2)	Value
		$25 Par (or similar) Preferred Securities – 91.5% (61.7% of Total Investments)
		Automobiles – 0.1%
	8,000	DaimlerChrysler AG (CORTS)	7.875%		Baa1	$	199,920
		Capital Markets – 8.2%
	21,206	Bear Stearns Capital Trust III	7.800%		A2		544,146
	8,500	BNY Capital Trust V, Series F	5.950%		Aa3		211,310
	60,300	Compass Capital Trust III	7.350%		A3		1,509,309
	39,900	CSFB USA, Series 2002-10 (SATURNS)	7.000%		AA-		1,012,263
	5,700	Goldman Sachs Group Inc., Series GSC-3 (PPLUS)	6.000%		A1		137,199
	7,700	Goldman Sachs Group Inc., Series GSC-4 Class A (PPLUS)	6.000%		A1		184,492
	5,300	Goldman Sachs Group Inc. (SATURNS)	5.750%		AA-		125,027
	357,800	Lehman Brothers Holdings Capital Trust III, Series K	6.375%		A2		8,944,999
	70,800	Merrill Lynch Preferred Capital Trust III	7.000%		A1		1,791,948
	21,200	Merrill Lynch Preferred Capital Trust IV	7.120%		A1		539,752
	84,400	Merrill Lynch Preferred Capital Trust V	7.280%		A1		2,183,428
	41,900	Morgan Stanley (PPLUS)	7.050%		Aa3		1,055,461
	80,100	Morgan Stanley Capital Trust II	7.250%		A1		2,037,744
	176,623	Morgan Stanley Capital Trust III	6.250%		A1		4,396,146
	75,700	Morgan Stanley Capital Trust VI	6.600%		A1		1,946,247
	29,718	Morgan Stanley Capital Trust VII	6.600%		A1		752,163
		Total Capital Markets					27,371,634
		Commercial Banks – 14.0%
	108,898	ABN AMRO Capital Trust Fund VII	6.080%		Aa3		2,739,874
	38,300	ASBC Capital I	7.625%		A3		963,245
	10,200	BAC Capital Trust VIII	6.000%		Aa2		253,980
	3,800	BAC Capital Trust X	6.250%		Aa2		95,190
	188,983	Banco Santander, 144A	6.800%		A+		4,783,632
	8,700	Banco Santander, 144A	6.500%		Aa3		221,579
	28,135	Banco Santander	6.410%		A2		716,317
	3,800	BancorpSouth Capital Trust I	8.150%		Baa1		95,722
	244,100	Banesto Holdings, Series A, 144A	10.500%		A2		7,384,025
	33,200	Bank One Capital Trust VI	7.200%		Aa3		844,608
	6,300	BankNorth Capital Trust II	8.000%		A1		158,445
	29,400	Capital One Capital II Corporation	7.500%		Baa1		774,508
	24,800	Chittenden Capital Trust I	8.000%		A3		622,728
	40,500	Citizens Funding Trust I	7.500%		Baa1		1,049,205
	44,500	Cobank ABC, 144A, (3)	7.000%		N/R		2,294,865
	35,816	Fleet Capital Trust VIII	7.200%		Aa2		899,340
	141,700	HSBC Finance Corporation	6.875%		AA-		3,610,516
	162,100	KeyCorp Capital Trust IX	6.750%		A3		4,103,156
	5,733	KeyCorp Capital Trust V	5.875%		A3		138,796
	245,800	National City Capital Trust II	6.625%		A2		6,175,725
	12,200	PNC Capital Trust	6.125%		A2		300,852
	104,465	Royal Bank of Scotland Group PLC, Series N	6.350%		A1		2,670,125
	16,100	USB Capital Trust XI	6.600%		Aa3		409,584
	19,700	VNB Capital Trust I	7.750%		A3		501,562
	51,000	Wells Fargo Capital Trust V	7.000%		Aa2		1,290,810
	6,800	Wells Fargo Capital Trust VI	6.950%		Aa2		169,728
	65,925	Wells Fargo Capital Trust VII	5.850%		Aa2		1,615,163
	80,800	Zions Capital Trust B	8.000%		A3		2,056,360
		Total Commercial Banks					46,939,640
		Computers & Peripherals – 0.0%
	2,900	IBM Inc., Trust Certificates, Series 2001-2	7.100%		A+		74,153
		Diversified Financial Services – 10.1%
	59,100	Allied Capital Corporation	6.875%		BBB+		1,442,412
	377,415	BAC Capital Trust XII	6.875%		Aa3		9,848,643
	45,900	CIT Group Incorporated (CORTS)	7.750%		A3		1,200,744
	10,100	Citigroup Capital XIV	6.875%		Aa2		263,913
	55,729	Citigroup Capital XV	6.500%		Aa3		1,410,640
	2,300	Citigroup, Series CIT (CORTS)	6.750%		A3		57,868
	12,550	General Electric Capital Corporation	6.450%		AAA		328,936
	108,000	General Electric Capital Corporation	6.050%		AAA		2,727,000
	504,300	ING Group N.V.	7.200%		A1		12,834,433
	142,900	ING Group N.V.	7.050%		A		3,618,228
	6,300	Royal Bank of Scotland Public Limited Company, Series 2006Q	6.750%		A1		164,619
		Total Diversified Financial Services					33,897,436
		Diversified Telecommunication Services – 1.8%
	25,000	AT&T Inc.	7.000%		A		635,000
	179,200	AT&T Inc.	6.375%		A		4,513,600
	3,300	BellSouth Capital Funding (CORTS)	7.100%		A		83,016
	4,600	BellSouth Corporation (CORTS)	7.000%		Aa3		114,425
	25,600	Verizon Communications (CORTS)	7.625%		A		659,072
		Total Diversified Telecommunication Services					6,005,113
		Electric Utilities – 2.8%
	55,200	Entergy Louisiana LLC	7.600%		A-		1,388,280
	203,447	Entergy Mississippi Inc.	7.250%		A-		5,175,692
	23,800	FPL Group Capital Inc.	6.600%		A3		611,660
	5,200	National Rural Utilities Cooperative Finance Corporation	7.400%		A3		132,340
	2,300	National Rural Utilities Cooperative Finance Corporation	6.100%		A3		56,442
	33,018	National Rural Utilities Cooperative Finance Corporation	5.950%		A3		781,206
	34,400	PPL Energy Supply LLC	7.000%		BBB		897,627
	8,900	Virginia Power Capital Trust	7.375%		Baa2		227,395
		Total Electric Utilities					9,270,642
		Food Products – 0.3%
	11,000	Dairy Farmers of America Inc., 144A, (3)	7.875%		BBB-		1,147,782
		Industrial Conglomerates – 0.0%
	1,400	General Electric Company, Series GE (CORTS)	6.800%		AAA		35,280
		Insurance – 19.8%
	194,400	Ace Ltd., Series C	7.800%		Baa2		4,994,136
	15,686	Aegon N.V.	6.875%		A-		413,797
	404,738	Aegon N.V., (3)	6.375%		A-		10,450,334
	10,800	AMBAC Financial Group Inc.	5.950%		AA		264,060
	195,649	Arch Capital Group Limited	8.000%		Baa3		5,249,263
	138,700	Delphi Financial Group, Inc.	8.000%		BBB		3,599,265
	45,867	EverestRe Capital Trust II	6.200%		Baa1		1,100,808
	294,716	EverestRe Group Limited	7.850%		Baa1		7,527,047
	151,100	Financial Security Assurance Holdings	6.250%		AA		3,768,434
	174,900	PartnerRe Limited, Series C	6.750%		BBB+		4,417,974
	3,000	PartnerRe Limited, Series D	6.500%		BBB+		75,390
	57,100	PLC Capital Trust III	7.500%		BBB+		1,443,488
	46,400	PLC Capital Trust IV	7.250%		BBB+		1,166,496
	4,500	PLC Capital Trust V	6.125%		BBB+		108,945
	332,400	Protective Life Corporation	7.250%		BBB		8,622,456
	53,244	Prudential PLC	6.750%		A-		1,371,033
	3,000	RenaissanceRe Holdings Limited	6.600%		BBB		73,350
	60,401	RenaissanceRe Holdings Limited, Series B	7.300%		BBB		1,534,185
	6,500	Safeco Capital Trust IV (CORTS)	8.375%		Baa2		178,783
	33,000	Safeco Corporation, Series 2001-7 (SATURNS)	8.250%		Baa2		844,140
	7,000	W.R. Berkley Corporation	6.750%		BBB-		177,800
	65,100	XL Capital Ltd, Series A	8.000%		BBB		1,648,332
	294,200	XL Capital Ltd, Series B	7.625%		BBB		7,466,796
		Total Insurance					66,496,312
		Media – 5.1%
	1,700	CBS Corporation	7.250%		BBB		42,789
	75,000	CBS Corporation	6.750%		BBB		1,877,348
	320,300	Comcast Corporation	7.000%		BBB+		8,287,763
	15,400	Comcast Corporation	7.000%		BBB+		396,070
	259,800	Viacom Inc.	6.850%		BBB		6,527,475
		Total Media					17,131,445
		Multi-Utilities – 0.1%
	17,900	Dominion CNG Capital Trust I	7.800%		Baa2		455,197
		Oil, Gas & Consumable Fuels – 1.8%
	195,200	Nexen Inc.	7.350%		Baa3		5,004,928
	34,700	TransCanada Pipeline	8.250%		A3		906,017
		Total Oil, Gas & Consumable Fuels					5,910,945
		Pharmaceuticals – 0.1%
	8,600	Bristol-Myers Squibb Company (CORTS)	6.250%		A+		213,280
	4,300	Bristol-Myers Squibb Company Trust (CORTS)	6.800%		A+		108,919
		Total Pharmaceuticals					322,199
		Real Estate – 22.6%
	10,700	AvalonBay Communities, Inc., Series H	8.700%		BBB		290,933
	29,200	BRE Properties, Series C	6.750%		BBB-		734,380
	8,029	BRE Properties, Series D	6.750%		BBB-		200,163
	171,200	Developers Diversified Realty Corporation, Series G	8.000%		BBB-		4,358,752
	32,000	Developers Diversified Realty Corporation, Series H	7.375%		BBB-		827,200
	112,900	Duke Realty Corporation, Series L	6.600%		BBB		2,833,790
	136,700	Duke Realty Corporation, Series N	7.250%		BBB		3,532,847
	149,000	Duke-Weeks Realty Corporation	6.950%		BBB		3,769,700
	20,800	Equity Residential Properties Trust, Series D	8.600%		BBB		522,288
	221,571	First Industrial Realty Trust, Inc., Series C	8.625%		BBB-		5,637,874
	144,300	First Industrial Realty Trust, Inc., Series J	7.250%		BBB-		3,659,448
	247,207	HRPT Properties Trust, Series B	8.750%		BBB-		6,343,332
	129,611	HRPT Properties Trust, Series C	7.125%		BBB-		3,350,444
	21,000	New Plan Excel Realty Trust, Series D	7.800%		BBB-		1,045,407
	36,300	New Plan Excel Realty Trust, Series E	7.625%		BBB-		908,226
	17,500	Prologis Trust, Series G	6.750%		BBB		443,975
	155,400	PS Business Parks, Inc.	7.000%		BBB-		3,909,864
	120,000	PS Business Parks, Inc., Series L	7.600%		BBB-		3,072,000
	115,500	Public Storage, Inc.	6.750%		BBB+		2,938,031
	3,000	Public Storage, Inc.	7.125%		BBB+		76,170
	16,500	Public Storage, Inc., Series F	6.450%		BBB+		409,200
	194,262	Public Storage, Inc., Series K	7.250%		BBB+		5,081,175
	32,500	Public Storage, Inc., Series M	6.625%		BBB+		806,406
	17,000	Public Storage, Inc., Series V	7.500%		BBB+		428,740
	77,300	Public Storage, Inc., Series Y	6.850%		BBB+		1,920,426
	5,900	Realty Income Corporation	7.375%		BBB-		151,512
	53,800	Realty Income Corporation, Series E	6.750%		BBB-		1,346,684
	30,972	Regency Centers Corporation	7.450%		BBB-		782,353
	84,500	Regency Centers Corporation	7.250%		BBB-		2,137,005
	68,600	Simon Property Group, Inc., Series G	7.890%		BBB+		3,510,605
	37,900	United Dominion Realty Trust	8.600%		BBB-		960,007
	61,800	Vornado Realty Trust, Series G	6.625%		BBB-		1,536,348
	7,500	Vornado Realty Trust, Series I	6.625%		BBB-		187,425
	262,800	Wachovia Preferred Funding Corporation	7.250%		A2		7,292,700
	39,900	Weingarten Realty Trust, Series E	6.950%		BBB+		1,011,465
		Total Real Estate					76,016,875
		Thrifts & Mortgage Finance – 3.5%
	223,569	Countrywide Capital Trust IV	6.750%		BBB+		5,423,784
	253,265	Countrywide Capital Trust V	7.000%		BBB+		6,204,993
	3,300	Harris Preferred Capital Corporation, Series A	7.375%		A1		83,325
		Total Thrifts & Mortgage Finance					11,712,102
		Wireless Telecommunication Services – 1.2%
	157,500	United States Cellular Corporation	8.750%		A-		4,057,200
		Total $25 Par (or similar) Preferred Securities (cost $303,995,010)					307,043,875
Principal
Amount (000)		Description (1)	Coupon	Maturity	Ratings (2)	Value
		Corporate Bonds – 1.9% (1.3% of Total Investments)
		Capital Markets – 0.9%
$	3,000	Mizuho JGB Investment	9.870%	6/30/48	BBB+	$	3,158,403
		Commercial Banks – 0.4%
	1,000	HT1 Funding, GmbH	6.352%	6/30/57	A1		1,411,314
		Insurance – 0.6%
	2,000	AXA SA, 144A	6.463%	12/14/49	Baa1		1,960,968
$	6,000	Total Corporate Bonds (cost $6,557,195)					6,530,685
Principal
Amount (000)/
Shares		Description (1)	Coupon	Maturity	Ratings (2)	Value
		Capital Preferred Securities – 48.3% (32.6% of Total Investments)
		Capital Markets – 7.1%
	1,000	Bank of New York Capital I, Series B	7.970%	12/31/26	Aa3	$	1,040,777
	250	C.A. Preferred Fund Trust II	7.000%	10/30/49	A1		253,858
	3,750	C.A. Preferred Funding Trust	7.000%	1/30/49	A1		3,798,169
	2,900	Dresdner Funding Trust I, 144A	8.151%	6/30/31	A-		3,461,341
	2,000	First Hawaiian Capital Trust I, Series B	8.343%	7/01/27	A-		2,092,088
	8,485	First Union Capital Trust II, Series A	7.950%	11/15/29	A1		10,281,723
	700	MUFG Capital Finance 2	4.850%	7/25/56	A2		913,680
	2,000	Washington Mutual Capital Trust I	8.375%	6/01/27	A3		2,088,206
		Total Capital Markets					23,929,842
		Commercial Banks – 26.6%
	2,000	AB Svensk Exportkredit, 144A	6.375%	10/27/49	AA-		1,991,200
	1,500	Abbey National Capital Trust I	8.963%	6/30/50	A+		2,007,378
	1,900	AgFirst Farm Credit Bank	7.300%	12/15/53	N/R		1,895,482
	1,500	BankBoston Capital Trust II, Series B	7.750%	12/15/26	Aa2		1,561,538
	500	BanPonce Trust I, Series A	8.327%	2/01/27	A3		521,395
	6,200	Barclays Bank PLC, 144A	8.550%	6/15/49	Aa3		6,948,873
	3,500	BBVA International Perferred SA, Unipersonal WI/DD, 144A	5.919%	10/18/49	A1		3,468,038
	5,000	Capital One Capital IV Corporation	6.745%	2/17/37	Baa1		4,807,340
	900	DBS Capital Funding Corporation, 144A	7.657%	3/15/49	A1		975,329
	4,400	Den Norske Bank, 144A	7.729%	6/29/49	Aa3		4,778,545
	500	Fifth Third Capital Trust IV	6.500%	4/15/37	A1		497,987
	1,000	First Empire Capital Trust I	8.234%	2/01/27	Baa1		1,042,547
	500	First Midwest Bancorp Inc.	6.950%	12/01/33	Baa1		527,215
	6,200	HBOS Capital Funding LP, Notes	6.850%	3/23/49	A1		6,272,360
	1,430	HSBC USA Capital Trust II, 144A	8.380%	5/15/27	A		1,493,355
	2,500	KBC Bank Fund Trust III, 144A	9.860%	5/02/50	A1		2,773,143
	2,500	Lloyds TSB Bank PLC, Subordinated Note	6.900%	11/22/49	Aa2		2,503,433
	4,000	North Fork Capital Trust I, Capital Securities	8.700%	12/15/26	Baa1		4,172,120
	3,150	Peoples Heritage Capital Trust I, Series B	9.060%	2/01/27	A1		3,299,146
	5,000	PNC Institutional Capital Trust B, 144A	8.315%	5/15/27	A2		5,220,310
	1,000	Popular North American Capital Trust I	6.564%	9/15/34	A3		993,407
	4,500	RBS Capital Trust B	6.800%	12/31/49	A1		4,517,960
	3,300	Shinsei Finance II Cayman Limited, Perpetual Maturity, 144A	7.160%	7/25/49	Baa2		3,405,188
	2,500	St. George Funding Company LLC, 144A	8.485%	12/31/47	A3		2,615,490
	2,660	Swedbank ForeningsSparbanken AB, 144A	9.000%	9/17/50	Aa3		2,915,522
	4,600	Union Planters Capital Trust A	8.200%	12/15/26	A2		4,781,392
	7,000	Union Planters Preferred Fund, 144A	7.750%	7/15/53	A2		7,669,375
	5,600	Washington Mutual Preferred Funding Cayman, Series A-1, 144A	7.250%	3/15/49	Baa1		5,425,269
		Total Commercial Banks					89,080,337
		Diversified Financial Services – 4.1%
	1,000	BNP Paribas Capital Trust	7.200%	12/31/49	A+		1,003,047
	1,300	Fulton Capital Trust I	6.290%	2/01/36	A3		1,273,445
	6,000	JPMorgan Chase Capital Trust XVIII	6.950%	8/17/36	Aa3		6,273,486
	3,000	MM Community Funding Trust I Limited	8.030%	6/15/31	Aaa		3,354,000
	1,800	Old Mutual Capital Funding, Notes	8.000%	6/22/53	Baa2		1,876,500
		Total Diversified Financial Services					13,780,478
		Diversified Telecommunication Services – 1.8%
	5	Centaur Funding Corporation, Series B, 144A	9.080%	4/21/20	BBB		6,175,569
		Insurance – 5.0%
	3,450	Ace Capital Trust II	9.700%	4/01/30	Baa1		4,602,062
	2,600	Great West Life and Annuity Insurance Company	7.153%	5/16/46	A-		2,717,876
	750	Mangrove Bay, Class 3, 144A	6.102%	7/15/33	BBB		738,609
	1,200	MetLife Inc.	6.400%	12/15/66	BBB+		1,175,502
	400	Nationwide Financial Services Capital Trust	7.899%	3/01/37	Baa1		473,586
	2,400	Oil Insurance Limited, 144A	7.550%	12/30/49	Baa1		2,534,268
	1,500	Prudential PLC	6.500%	6/29/49	A		1,505,562
	2,000	XL Capital, Limited	6.500%	10/15/57	BBB		1,943,334
	1,000	Zurich Capital Trust I, 144A	8.376%	6/01/37	A-		1,044,252
		Total Insurance					16,735,051
		Oil, Gas & Consumable Fuels – 0.9%
	3,000	KN Capital Trust III	7.630%	4/15/28	Baa3		2,903,739
		Road & Rail – 0.8%
	2,785	Burlington Northern Santa Fe Funding Trust I	6.613%	12/15/55	BBB		2,595,681
		Thrifts & Mortgage Finance – 2.0%
	4,225	Dime Capital Trust I, Series A	9.330%	5/06/27	A3		4,434,691
	2,400	Washington Mutual Preferred Funding Trust II	6.665%	3/15/57	Baa1		2,359,536
		Total Thrifts & Mortgage Finance					6,794,227
		Total Capital Preferred Securities (cost $163,683,835)					161,994,924
Shares		Description (1)				Value
		Investment Companies – 4.8% (3.2% of Total Investments)
	45,544	Blackrock Preferred and Corporate Income Strategies Fund				$	1,007,433
	158,913	Blackrock Preferred Income Strategies Fund					3,311,747
	148,936	Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.					3,321,273
	220,977	Flaherty and Crumrine/Claymore Total Return Fund Inc.					4,938,836
	148,386	John Hancock Preferred Income Fund III					3,426,233
		Total Investment Companies (cost $14,902,354)					16,005,522
Principal
Amount (000)		Description (1)	Coupon	Maturity		Value
		Short-Term Investments – 1.7% (1.2% of Total Investments)
$	5,672	Repurchase Agreement with Fixed Income Clearing Corporation, dated 3/30/07, repurchase price $5,674,786, collateralized by $5,730,000 U.S. Treasury Notes, 4.750%, due 2/15/10, value $5,787,300	4.900%	4/02/07		$	5,672,470
		Total Short-Term Investments (cost $5,672,470)					5,672,470
		Total Investments (cost $494,810,864) – 148.2%					497,247,476
		Other Assets Less Liabilities – 1.3%					4,236,254
		Preferred Shares, at Liquidation Value – (49.5)%					(166,000,000	)
		Net Assets Applicable to Common Shares – 100%				$	335,483,730

Interest Rate Swaps outstanding at March 31, 2007:

Fund

Fixed Rate

Unrealized

Notional

Pay/Receive

Floating Rate

Fixed Rate

Payment

Termination

Appreciation

Counterparty

Amount

Floating Rate

Index

(Annualized)

Frequency

Date

(Depreciation)

Citigroup Inc.

$

42,000,000

Receive

1-Month USD-LIBOR

3.255

%

Monthly

2/06/08

$

781,280

Citigroup Inc.

42,000,000

Receive

1-Month USD-LIBOR

3.815

Monthly

2/08/10

1,207,243

JPMorgan

21,000,000

Receive

1-Month USD-LIBOR

5.318

Monthly

5/06/07

58

$

1,988,581

USD-LIBOR (United States Dollar-London Inter-Bank Offered Rate)

Futures Contracts Outstanding at March 31, 2007:

								Unrealized
	Contract	Number of		Contract		Value at		Appreciation
Type	Position	Contracts		Expiration		March 31, 2007		(Depreciation)
U.S. Treasury Bonds	Long		496		6/07	$	55,180,000	$	(375,766)
U.S. 10-Year Treasury Notes	Long		851		6/07		92,014,375		(175,422)
								$	(551,188)

(1)	All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
(2)	Ratings: Using the higher of Standard & Poor’s or Moody’s rating. Ratings below BBB by Standard & Poor’s Group or Baa by Moody’s Investor Service, Inc. are considered to be below investment grade.
(3)	Investment is eligible for the Dividends Received Deduction.
N/R	Not rated.
WI/DD	Purchased on a when-issued or delayed delivery basis.
144A	Investment is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These investments may only be resold in transactions exempt from registration which are normally those transactions with qualified institutional buyers.
CORTS	Corporate Backed Trust Securities.
PPLUS	PreferredPlus Trust.
SATURNS	Structured Asset Trust Unit Repackaging.

Income Tax Information

The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to recognition of premium amortization, timing differences in the recognition of income and timing differences in recognizing certain gains and losses on investment transactions.

At March 31, 2007, the cost of investments was $495,500,996.

Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2007, were as follows:

Gross unrealized:
Appreciation	$	9,171,798
Depreciation		(7,425,318	)
Net unrealized appreciation (depreciation) of investments	$	1,746,480

Item 2. Controls and Procedures.

a.

The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).

b.

There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Nuveen Quality Preferred Income Fund 3

By (Signature and Title)*	/s/ Kevin J. McCarthy
	Kevin J. McCarthy
	Vice President and Secretary

Date May 30, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By (Signature and Title)*	/s/ Gifford R. Zimmerman
	Gifford R. Zimmerman
	Chief Administrative Officer (principal executive officer)

Date May 30, 2007

By (Signature and Title)*	/s/ Stephen D. Foy
	Stephen D. Foy
	Vice President and Controller (principal financial officer)

Date May 30, 2007

* Print the name and title of each signing officer under his or her signature.