There were several reports last year that Amazon was working on a device with a larger screen (presumably 9.7" EInk) primarily for college students. This would not be the K3, but may be the next release from Amazon in the US. See
Report: Not one, but several Kindle successors in the works! and
Report: A Kindle for college kids?. Note how many things those reports got wrong, but we do know that PVI is about to release (finally) its 9.7" screens and there will be several devices using these once they hit volume production. This screen is likely to be significantly more expensive than the 6" though.