Help understanding the following conversion
You can work backwards here. Step 3 converts cyclohexanol to the product by substitution reaction of methyl iodide and alkoxide. Sodium hydride is the base that deprotonates the alcohol.

Step 2 is a bit dubious. They want to substitute a secondary chloride with hydroxide. In principle this will work, though I am suspicious about whether or not it will actually take place. For cyclohexyl chloride (product from step 1), the substitution is probably only going to happen from the axial conformer; the equatorial conformer has the flag pole hydrogens blocking the approach to the $\sigma^{*}$ orbital. But from the axial conformer, I suspect that elimination is also a competitive pathway. Hard for me to say exactly what the relative rates are for sure.

Step 1 you've likely figured out. It's radical chlorination of an alkane.