How do you pass level 3?

You need to use w and e to navigate the maze. You should be able to use w (forward by a word) to get to "on," but since the next w should take you to "and" but the first letter is blocked, use e (end of word) instead. Similarly you won't be able to use e on "friend" since the last letter is blocked.

A simple way to get to the end is to spam w until you hear the beep, then switch to e, et cetera. Once you pick up the tile at the end that allows you to use x, you can return to the previous area to rub out the red letters. Since the maze was timed, I just let it teleport me back after a while.

(And once you do that, you can return to the initial maze to unlock that chest there using all your new powers.)

Go back and use the X to delete the red words.