Set your meter to any ohm range. 200 is fine. Any reading greater than zero between terminals one and two, and one and three, and two and three indicate good. If any of those readings are zero on your meter then you have a bad coil.

At least thats how I'm reading this.

You are actually testing for continuity, not an actual ohm (resistance) reading. According to the text, as long as those terminals in that combination have continuity, yer good. And any number between 0 and infinity demonstrates continuity.