Assertions:
Neither Internet Explorer or Netscape 1.0-4.x apply the BASEFONT SIZE attribute value to heading levels. Internet Explorer does apply the FACE and COLOR values to headings though.

Plain H3 element:

filler text

H3 element H3 element

filler text

H3 element enclosed in BASEFONT SIZE=6:

filler text basefont size=6

H3 element H3 element

basefont size=6 filler text

H3 element enclosed in BASEFONT SIZE=6, FONT SIZE=+1 inside heading:

filler text basefont size=6

H3 element (Font size=+1) H3 element

basefont size=6 filler text

Plain FONT SIZE=3, 4, 6 and 7 (for reference):

filler text
Font size=3
Font size=4
Font size=6
Font size=7
filler text