Some steps to construct an angle MNT congruent to angle PQR are listed below.

Step 1: Draw a segment NT.
Step 2: Use a compass to draw an arc from point Q that intersects the side PQ of angle PQR at point A and the side QR at point B.
Step 3:
Step 4: Adjust the width of the compass to AB, and draw an arc from point X such that it intersects the arc drawn from N in a point Y.
Step 5: Join points N and Y using a straightedge.

Which statement describes step 3 correctly?