MOBI lending library ebooks don't work directly on a Kindle.
There is a command line tool that will take a MOBI lending library ebook authorized for a Kindle PID and make it readable on that Kindle. The advantage of the tool is that it does not remove the DRM (encryption) or the time limit on the ebook. However, I don't know if this works on the K3 and the scripts I have seem for finding PID don't include the K3's.
The alternative is to strip the DRM, but this is clearly illegal in the US for a lending library ebook. It isn't unethical, though, if you delete the ebook within the lending period. If you are going this route, the PID to use is from Windows MobiPocket Reader (since you are going to strip it anyway).
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