Posted by Kromey at 5:19pm Apr 14 '13is that you train your Android's auto-correct as you use it. Your older phone is more likely to correctly guess the word you're typing because it "knows" you, whereas your new device is still learning.
Another part of it is, ironically, that the newer one is smarter! By that I mean not only does it have a larger dictionary to auto-correct from, but its algorithms have been tweaked to make more intelligent suggestions based on context -- e.g. "Spanish" may be more likely to come up sooner if you've already typed "I speak" or "I am". This, too, will learn from you as you use it more, but has the downside of making seemingly less-intelligent choices when it has no context to pull from (such as a word all by its lonesome).
I don't know why yours is only suggesting 3 words though. My new phone is also on Jellybean, and it shows as many words as it can fit on the Galaxy S3's screen before showing a drop-down arrow where you can tap to see a bunch more words -- again as many as it can fit, which of course varies depending on word length.
Yours will get better as you use it, and as you "correct" your auto-correct more. I'd say let it get to know you a bit more before you go looking for ways to change it outright.
Part of it - Kromey