The relation to Super Saiyan 3 concerns appearance.
"Super Baby is the final transformed state of Vegeta-Baby!! It has 2 types: Strongest Form 1, where Vegeta’s characteristics still remain, and Strongest Form 2, which resembles Super Saiyan 3. His final technique is the Revenge Death Ball, a mass of evil ki which might be called an evil Genki-Dama!!"