The way how level 3 works is: When you open or close doors, the smell of the pudding will start to slowly "linger into" the room, or slowly "linger out" of the room. To solve the puzzle, you need to take advantage of how slow it is for the smell to catch up to you.
Basically, you need to flip the gray switch, then the blue switch, after that hit the gray switch again and immediately run to the left and fall down.