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This serial adapter would have to AppleTalk compatible (not all current serial to USB adapters are).
Another way to go would be getting ethernet on the LCIII and to connect the computers via crossover cable. Such an ethernet card would be a specific LC III PDS slot card.
Another possibility is an Ethernet-localtalk bridge (I think Asante do one).
I haven't found any USB-Serial adapters that support Appletalk yet, and the UK is pretty much out of old LCIII ethernet cards, otherwise mine would be networked up too.
The Bridge is workable, but much slower the ethernet. The I know there are plenty of these pds cards out there. Look around, you can probably get it for <$50 (bridge @ $100)
I added a PDS ethernet card to my Performa 476 (just like an LCIII) and run 10BT ethernet without a hitch. Just set appletalk to the ethernet port. It's used for filesharing and sharing a printer so I run it to a hub. The card can be had for $40 or less and a cheap hub (4 ports) for about $25 or so. Good luck.