You can't just put n+1 to it, you have to prove it

It means count all such words for n+1.
1. Prove for N(0):
There are only 3 "legitimate" values and N(0) = 3. So it's true!
2. Prove for N(n+1) if we know that it's true for N(n)
Let's count how many "legitimate" words could be for N(n+1):
a) We can construct "legitimate" word length n+1 by adding 1, 2 or 3 to "legitimate" word of length n, so there will be 3*N(n) such "legitimate" words;
b) By adding 0 to a non "legitimate" word of length n. There will be (2^2n-N(n)) such "legitimate" words of length n;
So it's totally true
