samjar
Do not murder your DH, and do not reject the school you've been offered, unless you really can HE indefinitely.
People are only ever offered one school, and it will be the highest up the preference form (if they qualified for more than one).
So in your circumstances, it means that you did not qualify for school 1 (it was filled with applicants who fitted the school criteria better than you did). You don't know if you would have been offered school 3 if it had been listed higher up yput form - because once they know you qualify for 2, you will be taken off lists for lower choices (shuffling everyone on those lists up one, as ranking lists for every school,are turned into single offer for each candidate).
It is likely you will have been pit on the waiting list for 1 automatically, but do check. You can also ask to be added to the waiting lists for your lower preference school, as you actually want it now, or indeed any other school.
Ring admissions as soon as you can about that. If school 3 isn't full, you want to get your interest known asap