So I assume it will be 'Bama and The Horns? I suppose one should never assume with the BCS.....
Number 1 ,2 and 3 all played.
#1 lost--#2 and #3 won---#2 and #3 have no losses making them #1 and #2 while the losing team falls to #3 (in my opinion)
Now #1 can/should play #2 for the championship.