Relation between the size of sub-problems and number of sub-problems in a recurrence
A simple, specific example of an algorithm with a type $(iii)$ recurrence is binary search. At each point you decide whether to look in the left or the right half of the current section of the array, so your problem halves, and you only have one subproblem. The recurrence is then $T(n) = T(\frac{n}{2}) + O(1)$.

So you might get a type $(iii)$ any time you "discard" part of the input at each step.

A divide and conquer approach to multiplying large numbers can give you a type $(ii)$ recurrence (obviously there's faster algorithms now though). If you split the numbers in half, you can turn one multiplication of two large numbers in to four multiplications of half-sized numbers, plus some addition. Gauss reduced this to three multiplications of half size numbers (but with more addition and subtraction), so the recurrence for this algorithm is $T(n) = 3T(\frac{n}{2})+O(add)$ (the exact recurrence depends on how you deal with addition/subtraction).