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Level 3 - ELSEHTR
The answer to this puzzle is:
Words: RELETS, ETHERS, STREEL, LETHES, THERES, THREES, LEETS, HERES, TERSE, HERLS, TELES, LEERS, STELE, SLEET, THREE, REEST, LEHRS, LETHE, REELS, RELET, STERE, ETHER, ESTER, TEELS, LEHR, LEET, LETS, REES, ETHS, TEES, EELS, LEST, ERST, ELSE, HERS, HEST, SEER, LEER, LEES, REEL, THEE, HERE, RESH, RETE, SERE, HEEL, TELE, TRES, SET, EEL, LES, ERE, THE, TEL, TEE, SER, RES, LEE, HER, SEE
Bonus words:
RELETS, ETHERS, STREEL, LETHES, THERES, THREES, LEETS, HERES, TERSE, HERLS, TELES, LEERS, STELE, SLEET, THREE, REEST, LEHRS, LETHE, REELS, RELET, STERE, ETHER, ESTER, TEELS, LEHR, LEET, LETS, REES, ETHS, TEES, EELS, LEST, ERST, ELSE, HERS, HEST, SEER, LEER, LEES, REEL, THEE, HERE, RESH, RETE, SERE, HEEL, TELE, TRES, SET, EEL, LES, ERE, THE, TEL, TEE, SER, RES, LEE, HER, SEE