Computer Hope

Has any one ever used Macrium Reflect to clone a hard drive ?  I am attempting the cloning process but need some help. See attached ?

The top portion is the existing HD 300GB. It shows with 3 partitions.
# 1 System Reserved - Active NTFS 
#2 (C:) Primary - NTFS
#3 (None) Primary NTFS

I understand that #1 is for the OS files and # 2 is the C: Drive   but what is #3??? When i  drag and drop the partitions below as directed I see a section to the right that is grayed out with 167 Gb. Is that extra storage on the destination drive which is 500Gb HD.
Do i need to make drive C: on the destination drive larger to utilize the extra space and if so how do I do that and do i need partition #3 on the destination drive

Thank You
AAO

The third partition on the source is a partition created by windows to allow windows to reverse any problem updates. it is needed but with the latest update 2h22 it is to small in size needing to be about 1 Gb.
Instead of copying the partitions select copy disk this will resize the c drive to use the free space leaving  the first and third partitions the same size. After the drive is copied and the copy is tested booting. Then you can resize the 2 nd partition slightly smaller by 500 gbs and then resize the third partition out to 1 gb