I finally found what I was looking for, it was from Uny in reply to one of my posts and it really doesn't apply to the #3 tincture. Sorry I misled everyone, just knew that I had read something about hotter not being as effective.
"You can make a very hot, very effective tincture from dried African Bird Peppers (from M/R) and 100 proof vodka. It WILL be hotter (as the Heat Units in peppers increase as they dry), but even though it's technically 'hotter' it's not quite as effective as the one made with raw peppers. STILL, it'll be hotter and more effective than ANYTHING you can buy commercially. Here's Dr. Schulzes "cayenne tincture method" - and this works for virtually every tincture (if you don't have fresh, use dried)."
But I'd still like to hear from Uny what the difference is between the #1, 2, & 3 because maybe the #2 & 3 are more beneficial once you get used to the heat from the #1.