I believe it should work. As @cmr said you'll lose 50% bandwidth per hop, but you can do multiple hops - what you're describing is about the limit you want to push though, ideally every mesh AP will connect back to a gateway (i.e. a wired AP). The Meraki Mesh design guide is here, https://documentation.meraki.com/MR/Deployment_Guides/Mesh_Deployment_Guide. I'd see if you can actually get a direct connection from AP3 to AP1 - you might get better performance even if it is at a lower bandwidth (due to distance) than putting the extra hop in the middle. Although that may also need some careful planning to make sure that is the way it meshes.
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