Provided you're downloading it from the right page I'm not sure what else you should do.
As long as you have the proper firmware for the device and copied it to the root of the device (don't put it in any folder) you should see the update option. Registering/not registering it shouldn't make a difference.
You're sure it's a Paperwhite 3 and not a late model PW2 which uses a different file? (sorry, just throwing out ideas)
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