Since 3 does not occur in 1000, we have to count the number of times 3 occurs when we list the integers from 1 to 999. Any number between 1 and 999 is Of the form xyz where 0≤x,yz≤9. Let us first count the numbers in which 3 occurs exactly once.
Since 3 can occur at one place in 3C1 ways, there are (3P1)(9×9)=3×92 such numbers. Next, 3 can occur in exactly two places in (3C1)(9)=3×9 such numbers. Lastly, 3 can occur in all three digits in one number only. Hence, the number of tithes 3 occurs is 1×(3×9)2+2×(3×9)+3×1 =243+54+3=243+57 =300