Don't worry, this is a hidden canvas. You can delete it after you read this.

If you want to set this page as your Blog main page instead of "Blog Home", you'll want to change the link to "Blog" in your navigation menu and footer (and anywhere else you're linking to your blog). To do this, click on this page on the lefthand sidebar, and navigate to the Template Info tab on the right. Make sure Wordpress Template type is set to "Post List (Default)" and that no other templates are set to that type. After that, you can link to this page by setting any "Blog" links under Click Actions to Type > Page > Post List. 

If you simply want to use this page as the page you see after you click "View More" from the Blog Home page, follow the directions on the hidden canvas on Blog Home, and just make sure this page and no other page is set to "Post List (Default)" as the Template type.

To set the 3 blog posts in the header, choose any 3 of your favorite posts and categorize them in your Wordpress blog as "favorite".