Dark Spiral: Mouth of Swords, increase level by 3!?

My players just reached the mouth of swords in "The Dark Spiral" and are 3rd tier. a note on page 47 states to modify the level of all creatures by 3, making Myth Keeper, the Wrath Lord a level 8, and bumping up a lot of the encounters towards the "7,8,9" levels. Is that accurate? This is my first time getting to the point when players have characters this powerful, can they handle things in that range?

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