Here is my scenario. I have a figure with energy shield deflection and I want to perplex up his defense by 3. I am being told that because of rule of three I will not get the +2 from range given by the energy shield deflection or a hindering +1 bonus for standing in a bush. Is this correct?

The rule is that the total net modification to a combat value cannot be more than +/- 3. You are welcome to perplex it by as much as you can/want, but when used in combat it can be no more than +/-3 from the base value (whether printed or granted by a replacement).

SFBull is correct.

If your character has ESD and is in hindering, there is no need to perplex up the defense because he would be maxxed out from range, but you may perplex the characters defense anyway...just in case you get hit by a close combat attack.

After I typed the question it became clear to me as well...works just like ranged combat expert. Can't go past modification 3. Thanks guys.

no u can still perplex up the defense. So if they outwit ESD u still have the +3 from perplex. or if they outwit your perplex u still have ESD to fall on.

or your oponent could make a close combat attack instead of a ranged combat attack so your fig would be +3 (perplex) and not using the ESD.

the point is that you can perplex +18 your defense and in his turn your opponent can perplex -12 your figs defense, but when your opponent attacks and ask "what defense you have?" you can only apply +3 to your DV (in this example).