Lila made an error in Step 3 when she did not use the x- and y-coordinates from the same ordered pair.
In her calculation for finding the y-intercept, she used the point (35, 41.45) and (65, 55.55) correctly to find the slope, but when determining the equation of the line, she should have substituted one of the ordered pairs into the point-slope formula using the correct y-coordinate corresponding to the x-coordinate she chose. She incorrectly substituted values when calculating the y-intercept, leading to the wrong slope-intercept equation.
Thus, the correct answer is: Lila made an error in Step 3 when she did not use the x- and y-coordinates from the same ordered pair.