ok i found a way to fix it. It is only a software issue and the only thing we need to do is to download the ios via wifi from a computer to the watch.
I just did it and i have my watch back in 10 minutes.
Anyone would like to send him the links or even the files and youtube instructions please let me know.
I tried setting up the transfer using 'Download (wireless)' option within the 'Bootup options' page, but by setting up the Direct WiFi directly as required by the watch to the computer, the computer's WiFi connection to the internet is severed. This tells me I better have the ios on my computer before I start, but Samsung will not make the ios available. Where did you get the ios file AND what was the complete procedure you uploaded the ios to the watch?! I'm so close to fixing this, I can 'taste' it!!
Samsung forum here doent like to give to us the simple solution and they have ban - erased some of our messages.
I will share this link with you and anyone could download it. The files are for S3 smartwatches 760 and 770.
Instructions are given on my previous messages and links from you tube as well with detailed info of how could you upload the OS for your S3 watch.