3G (3rd gen) is too vague. There have been 4 Prius models so far, NHW10, NHW11, NHW20, and ZVW30 so which are you referring to as the third?
For the NHW20 there is a slot in the dash for the fob.
For the ZVW30 you hold the fob up next to the power button while you power on the car.
Both are only necessary for direct passive RFID in case the FOB battery is dead or SKS is turned off.
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