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Grid complete, but can anyone shed light on the final part:-
Highlight 3-letter word (via 2 knights' moves in approximately relevant direction)that describes the thematic situation.

There is a thread on this crossword in www.answerbank.co.uk which might be of use to you? Too hard for me I'm afraid!

not doing this but...

if you know your starting point

The knight moves to the nearest square not on the same rank, file, or diagonal. In other words, the knight moves two squares like the rook and then one square perpendicular to that. Its move is not blocked by other pieces, i.e. it leaps to the new square. The knight moves in an "L" or "7" shape (or either shape inverted) with two steps one direction, a 90° turn, and one step in the new direction.