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Cat3? As in most cities in the US are limited to 10mbps?
No, the average internet download speed in the United State is about 171 Mbps. Though disclaimer, I'm not sure of the exact reliability of that number, different sources are reporting quite a range of speeds, though I don't see any under 100 Mbps average and I see many reporting well above this. You'd also have to consider median vs average since people with fiber sitting at gigabit speeds may be dragging that number up, median may be lower.
https://www.highspeedinternet.com/resources/fastest-slowest-internet
There are certainly some areas, especially rural, that struggle though. And upload speed is often much worse unless you have fiber. Major cities are definitely getting much better than 10 Mbps down though.
Cat 3 isnt actually a thing, but people call house phone wiring that. Runs DSL quite well.
Cat 3 is a thing and is basically unshielded twisted pair. You can abuse it quite a bit from its voice grade days to cram a few hundred megabits of VDSL over it if it's only from your house to the curb.