The withdrawal of India left only three teams in Group 3. Although Italy were the reigning world champions it had been 12 years since they won the title and their new generation of players had been decimated by the Superga air disaster a year earlier.
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Sweden
Italy
Carapallese put Italy into the lead in the seventh minute but their inexperienced team then fell behind and Sweden were 2-1 up at half-time. Jeppson made it 3-1 with his second of the match after 69 minutes and although Muccinelli put Italy back in the game soon afterwards, the points went to Sweden.
(Claudio Betta, Andre Silva)
Sweden
Paraguay
Paraguay came back from being 2-0 down to draw the game but the result was enough for Sweden to qualify for the next phase.
Italy
Paraguay
With nothing to play for but pride, Italy scored once in each half to ensure a second place finish in the group.
(Claudio Betta, Andre Silva)