PAGE 1 000 A000000 01/31/2012 000 C000000 0000883412 000 D000000 N 000 E000000 NF 000 F000000 Y 000 G000000 N 000 H000000 N 000 I000000 6.1 000 J000000 A 001 A000000 BLACKROCK MUNIYIELD QUALITY FUND III, INC. 001 B000000 811-06540 001 C000000 8004417762 002 A000000 100 BELLEVUE PARKWAY 002 B000000 WILMINGTON 002 C000000 DE 002 D010000 19809 003 000000 N 004 000000 N 005 000000 N 006 000000 N 007 A000000 N 007 B000000 0 007 C010100 1 008 A000001 BLACKROCK ADVISORS, LLC 008 B000001 A 008 C000001 801-47710 008 D010001 WILMINGTON 008 D020001 DE 008 D030001 19809 008 A000002 BLACKROCK INVESTMENT MANAGEMENT, LLC 008 B000002 S 008 C000002 801-56972 008 D010002 PRINCETON 008 D020002 NJ 008 D030002 08540 012 A000001 COMPUTERSHARE TRUST COMPANY, N.A. (COMMON) 012 B000001 85-11340 012 C010001 PROVIDENCE 012 C020001 RI 012 C030001 02940 012 A000002 BNY MELLON (VRDP) 012 B000002 85-05006 012 C010002 NEW YORK 012 C020002 NY 012 C030002 10289 012 A000003 CITIGROUP GLOBAL MARKETS INC. (VRDP) 012 B000003 85-00000 012 C010003 NEW YORK 012 C020003 NY 012 C030003 10179 013 A000001 DELOITTE & TOUCHE LLP PAGE 2 013 B010001 BOSTON 013 B020001 MA 013 B030001 02116 014 A000001 BLACKROCK CAPITAL MARKETS, LLC 014 B000001 8-67827 014 A000002 BLACKROCK EXECUTION SERVICES 014 B000002 8-48719 014 A000003 BLACKROCK FUND DISTRIBUTION COMPANY 014 B000003 8-67795 014 A000004 BLACKROCK INVESTMENTS, LLC 014 B000004 8-48436 014 A000005 HARRIS WILLIAMS LLC 014 B000005 8-53380 014 A000006 PNC CAPITAL MARKETS, INC. 014 B000006 8-32493 014 A000007 PNC INVESTMENTS LLC 014 B000007 8-66195 015 A000001 STATE STREET BANK AND TRUST COMPANY 015 B000001 C 015 C010001 BOSTON 015 C020001 MA 015 C030001 02101 015 E010001 X 015 A000002 THE BANK OF NEW YORK MELLON 015 B000002 S 015 C010002 NEW YORK 015 C020002 NY 015 C030002 10286 015 E010002 X 015 A000003 J.P. MORGAN CHASE BANK 015 B000003 S 015 C010003 NEW YORK 015 C020003 NY 015 C030003 10017 015 E010003 X 018 000000 Y 019 A000000 Y 019 B000000 289 019 C000000 BLKRKADVSR 020 A000001 BANC OF AMERICA SECURITIES LLC 020 B000001 56-2058405 020 C000001 3 020 A000002 UBS SECURITIES LLC 020 B000002 13-3873456 020 C000002 1 021 000000 4 022 A000001 FFI INSTITUTIONAL TAX-EXEMPT FUND 022 B000001 22-2509978 022 C000001 137279 022 D000001 104871 022 A000002 CITIGROUP GLOBAL MARKETS, INC. PAGE 3 022 B000002 11-2418191 022 C000002 29755 022 D000002 31700 022 A000003 MORGAN STANLEY & CO. INCORPORATED 022 B000003 13-2655998 022 C000003 36154 022 D000003 7380 022 A000004 BANC OF AMERICA SECURITIES LLC 022 B000004 56-2058405 022 C000004 4984 022 D000004 37025 022 A000005 PERSHING LLC 022 B000005 13-2741729 022 C000005 9365 022 D000005 11538 022 A000006 JPMORGAN SECURITIES INC 022 B000006 13-3299429 022 C000006 18967 022 D000006 1290 022 A000007 WELLS FARGO & CO 022 B000007 41-0449260 022 C000007 13692 022 D000007 5537 022 A000008 UBS SECURITIES LLC 022 B000008 13-3873456 022 C000008 0 022 D000008 15045 022 A000009 GOLDMAN SACHS & CO 022 B000009 13-5108880 022 C000009 13584 022 D000009 0 022 A000010 BARCLAYS CAPITAL INC. 022 B000010 13-3299429 022 C000010 6995 022 D000010 5419 023 C000000 290644 023 D000000 260479 024 000000 N 026 A000000 N 026 B000000 N 026 C000000 N 026 D000000 Y 026 E000000 N 026 F000000 N 026 G010000 N 026 G020000 N 026 H000000 N 027 000000 N 028 A010000 0 028 A020000 0 028 A030000 0 PAGE 4 028 A040000 0 028 B010000 0 028 B020000 0 028 B030000 0 028 B040000 0 028 C010000 0 028 C020000 0 028 C030000 0 028 C040000 0 028 D010000 0 028 D020000 0 028 D030000 0 028 D040000 0 028 E010000 0 028 E020000 0 028 E030000 0 028 E040000 0 028 F010000 0 028 F020000 0 028 F030000 0 028 F040000 0 028 G010000 0 028 G020000 0 028 G030000 0 028 G040000 0 028 H000000 0 030 A000000 0 030 B000000 0.00 030 C000000 0.00 031 A000000 0 031 B000000 0 032 000000 0 033 000000 0 035 000000 0 036 B000000 0 038 000000 0 042 A000000 0 042 B000000 0 042 C000000 0 042 D000000 0 042 E000000 0 042 F000000 0 042 G000000 0 042 H000000 0 043 000000 0 044 000000 0 045 000000 Y 046 000000 N 047 000000 Y 048 000000 0.500 048 A010000 0 PAGE 5 048 A020000 0.000 048 B010000 0 048 B020000 0.000 048 C010000 0 048 C020000 0.000 048 D010000 0 048 D020000 0.000 048 E010000 0 048 E020000 0.000 048 F010000 0 048 F020000 0.000 048 G010000 0 048 G020000 0.000 048 H010000 0 048 H020000 0.000 048 I010000 0 048 I020000 0.000 048 J010000 0 048 J020000 0.000 048 K010000 0 048 K020000 0.000 049 000000 N 050 000000 N 051 000000 N 052 000000 N 053 A000000 Y 053 B000000 Y 053 C000000 N 054 A000000 Y 054 B000000 Y 054 C000000 N 054 D000000 N 054 E000000 N 054 F000000 N 054 G000000 N 054 H000000 Y 054 I000000 N 054 J000000 Y 054 K000000 N 054 L000000 N 054 M000000 Y 054 N000000 N 055 A000000 N 055 B000000 N 056 000000 Y 057 000000 N 058 A000000 N 059 000000 Y 060 A000000 N 060 B000000 N 061 000000 0 PAGE 6 062 A000000 Y 062 B000000 0.0 062 C000000 0.0 062 D000000 0.0 062 E000000 0.0 062 F000000 0.0 062 G000000 0.0 062 H000000 0.0 062 I000000 0.0 062 J000000 0.0 062 K000000 0.0 062 L000000 3.7 062 M000000 0.0 062 N000000 0.0 062 O000000 153.2 062 P000000 0.0 062 Q000000 0.0 062 R000000 0.0 063 A000000 0 063 B000000 20.6 064 A000000 Y 064 B000000 N 066 A000000 N 067 000000 N 068 A000000 N 068 B000000 N 069 000000 N 070 A010000 Y 070 A020000 N 070 B010000 N 070 B020000 N 070 C010000 Y 070 C020000 N 070 D010000 N 070 D020000 N 070 E010000 Y 070 E020000 Y 070 F010000 N 070 F020000 N 070 G010000 Y 070 G020000 N 070 H010000 N 070 H020000 N 070 I010000 N 070 I020000 N 070 J010000 N 070 J020000 N 070 K010000 Y 070 K020000 Y 070 L010000 N 070 L020000 N PAGE 7 070 M010000 N 070 M020000 N 070 N010000 Y 070 N020000 N 070 O010000 Y 070 O020000 N 070 P010000 Y 070 P020000 N 070 Q010000 N 070 Q020000 N 070 R010000 N 070 R020000 N 071 A000000 153394 071 B000000 180959 071 C000000 1481353 071 D000000 10 072 A000000 6 072 B000000 37169 072 C000000 0 072 D000000 0 072 E000000 0 072 F000000 3815 072 G000000 92 072 H000000 0 072 I000000 40 072 J000000 32 072 K000000 0 072 L000000 20 072 M000000 56 072 N000000 13 072 O000000 0 072 P000000 1667 072 Q000000 0 072 R000000 23 072 S000000 77 072 T000000 0 072 U000000 0 072 V000000 0 072 W000000 1649 072 X000000 7484 072 Y000000 6 072 Z000000 29691 072AA000000 1386 072BB000000 0 072CC010000 110526 072CC020000 0 072DD010000 29287 072DD020000 0 072EE000000 0 073 A010000 0.4336 073 A020000 0.0000 PAGE 8 073 B000000 0.0000 073 C000000 0.0000 074 A000000 231 074 B000000 0 074 C000000 0 074 D000000 1538130 074 E000000 0 074 F000000 0 074 G000000 0 074 H000000 0 074 I000000 37111 074 J000000 6347 074 K000000 0 074 L000000 16912 074 M000000 1299 074 N000000 1600030 074 O000000 0 074 P000000 662 074 Q000000 0 074 R010000 0 074 R020000 0 074 R030000 0 074 R040000 239140 074 S000000 356400 074 T000000 1003828 074 U010000 67569 074 U020000 0 074 V010000 14.86 074 V020000 0.00 074 W000000 0.0000 074 X000000 32034 074 Y000000 372270 075 A000000 0 075 B000000 936633 076 000000 14.91 077 A000000 Y 077 B000000 N 077 D000000 N 077 E000000 Y 077 I000000 N 077 O000000 Y 077 Q010000 N 078 000000 N 080 C000000 0 081 B000000 0 082 B000000 0 083 B000000 0 084 B000000 0 086 A010000 0 086 A020000 0 086 B010000 37 PAGE 9 086 B020000 526 086 C010000 0 086 C020000 0 086 D010000 0 086 D020000 0 086 E010000 0 086 E020000 0 086 F010000 0 086 F020000 0 087 A010000 COMMON STOCK 087 A020000 09254E103 087 A030000 MYI 087 B010000 PREFERRED STOCK 088 A000000 N 088 B000000 N 088 C000000 N 088 D000000 Y SIGNATURE NEAL J. ANDREWS TITLE CFO