Watch the Tsenacommacah online guitar lesson by Stephen Bennett from Fingerstyle Finesse
Breakdown 3 is is the middle section of the tune. Not so many easy, familiar chords shapes here. Rather, the music is very clearly a melody line along with a bass line and not so apparently related to chords. Try to make sure that both lines can be heard.
There is a bit of contrary motion in this part, which is a wonderful and fundamental musical principle. It's what happens when one part is going up while another is going down. Your ear is always intrigued by that contrary movement, whether you are conscious of it or not.
We also have an example of integrating harmonics into a melody line here. This will occur in Breakdown 4 when we do a variation on the main melody higher up the neck.
There is also a harmonic variation. Basic chords, but a nice change underneath the melody.
And last, there is a very cool bit with harmonics intermingled with open regular notes. Fingering is crucial here, so pay attention. Whenever my wife uses that word "attention", I always use that as my cue to remind her that when I was a kid, my family was so poor we couldn't afford to pay attention...
Get back to work.