Hi Gary,
Bits 4 and 5 are connected to Encoder Counter #2. See the table for KFLOP JP7 here:
KFLOP Connectors
It looks like you are using KFLOP Axis channels #0 #2 and #3. I'm not sure why you skipped #1 but that is ok if you wish.
It looks like you plan to use KFLOP Axis #3 to monitor the encoder input. That is also ok, but it is configured to use Encoder Counter #4 which is not what you wired your encoder to. Change:
ch3->InputChan0=4;
to
ch3->InputChan0=2;
After doing so (and executing the program) then the Axis Screen should display your encoder Position for Axis #3
You might read this article:
Channels Channels Channels - Dynomotion
Regards