1 and 3 are both correct, although 1 is probably more common. Sentence 3 has more emphasis on the exactly, so if I were asked that way I would answer with more detail than if I were asked question number 1. Hope this helps!

Thank you so much, and I undrestand that I must remember the words 'do you live' stay together and in that order' So I see this as a rule.

The important thing here is that the words 'do you live' stay together and in that order and so numbers 1 and 3 are correct. 1 places the emphasis on exactly before the question is asked preparing the listener to give a precise answer before they have heard the question. In number 1 there may be a slight pause after the 'exactly.' Number 3 is more casual with the 'exactly' being an after thought. Number 3 is wrong. You would be understood but the words just tumble out of the mouth in a way that the native speaker would not normally speak unless she was drunk or distracted in some way.