Here's how the Falcon Inter 3 Speed should be adjusted:
1) Unscrew the plastic cover.
2) Put grip shifter to 2 position
3) On the pushrod, you should be able to see a line cut around the pushrod, thatís the 2nd gear position.
4) Turn the plastic knurled knob until you see this line is aligned with the pushrod entering the hub.
5) Shifter move to 1 position and you should see the push rod being pushed all the way into the hub.
6) Shifter in 3 position and you should see the pushrod being extended OUTWARDS all the way.
7) Screw back the plastic cover