You got it right. You fill the 127-q jar to the brim, pour 21 quarts from it into the 21-q jar (now there are 106 quarts in the 127-q jar), then pour 3 quarts into the 3-q jar (now there are 103 quarts in the 127-q jar), use the water from the 3-q jar to water your garden, then fill that 3-q jar again from the 127-q jar. You're left with 100 quarts in the 127-q jar, 3 quarts in the 3-q jar, 21 quarts in the 21-q jar, and 3 quarts in the garden.