I found the source of my errors: there was another, different, poorly formed tag that seems to have confused Sigil. Once I found and fixed that tag, the problem with the h3 tag went away.
I finally more or less completed my next book using v. 0.4.0, and I must really praise Valloric for a job well done! My document had several mistakes that Sigil pointed out; I manually corrected them and voila!
There was a world of difference between using the old and frustrating v. 0.3.4 and the new improved 0.4.0. Thanks again to Valloric!
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