[step:Show that the square-root and odd-degree conditions force $F(i)$ to be algebraically closed]Assume condition $3$, and let $<$ be such an ordering on $F$. Since $-1<0$, the element $-1$ is not a square in $F$, so $F$ is not algebraically closed and $K:=F(i)$ is a quadratic extension of $F$.
First we prove that every element of $K$ has a square root in $K$. Let $z=a+bi \in K^\times$ with $a,b \in F$. Define
\begin{align*}
r \in F
\end{align*}
to be the positive square root of $a^2+b^2$, which exists because $a^2+b^2>0$. The elements
\begin{align*}
\frac{r+a}{2}, \qquad \frac{r-a}{2}
\end{align*}
are nonnegative in $F$, since $r^2-a^2=b^2 \geq 0$ and $r \geq |a|$ in the ordered field. Hence they have square roots in $F$. Choose $c,d \in F$ satisfying
\begin{align*}
c^2=\frac{r+a}{2}, \qquad d^2=\frac{r-a}{2},
\end{align*}
and choose the sign of $d$ so that $2cd=b$ when $b \neq 0$; if $b=0$, take $d=0$ when $a\geq 0$ and $c=0$ when $a<0$. Then
\begin{align*}
(c+di)^2=(c^2-d^2)+2cd\,i=a+bi=z.
\end{align*}
Thus every element of $K$ has a square root in $K$. Since $K$ contains $i$, we have $\operatorname{char} K \neq 2$. For any quadratic polynomial $X^2+pX+q \in K[X]$, completing the square gives
\begin{align*}
X^2+pX+q=\left(X+\frac{p}{2}\right)^2-\left(\frac{p^2}{4}-q\right),
\end{align*}
and the element $p^2/4-q \in K$ has a square root in $K$. Hence every quadratic polynomial over $K$ splits in $K$, so $K$ has no quadratic extension.
Now suppose, for contradiction, that $K$ is not algebraically closed. Then there exists an element algebraic over $K$ whose [minimal polynomial](/page/Minimal%20Polynomial) over $K$ has degree greater than $1$; adjoining one such element gives a finite extension $E/K$ with $E \neq K$. Since $F$ is ordered, $\operatorname{char} F=0$, so every algebraic extension of $F$ is separable. Therefore the normal closure of the finite extension $E/F$ is a finite Galois extension. Choose such a finite Galois extension $L/F$ containing $E$, and define
\begin{align*}
G:=\operatorname{Gal}(L/F), \qquad H:=\operatorname{Gal}(L/K).
\end{align*}
By the [Fundamental Theorem of Galois Theory](/page/Fundamental%20Theorem%20of%20Galois%20Theory), the equality $[K:F]=2$ gives
\begin{align*}
[G:H]=[K:F]=2.
\end{align*}
We use two finite group facts: the [Sylow Theorems](/page/Sylow%20Theorems), which imply that a Sylow $2$-subgroup $S \leq G$ has odd index $[G:S]$, and the elementary fact that every nontrivial finite $2$-group has a subgroup of index $2$.
Let $S \leq G$ be a Sylow $2$-subgroup. By the [Fundamental Theorem of Galois Theory](/page/Fundamental%20Theorem%20of%20Galois%20Theory), its fixed field $L^S$ satisfies
\begin{align*}
[L^S:F]=[G:S],
\end{align*}
which is odd. We now prove that $L^S=F$. The extension $L^S/F$ is finite and separable because it is a subextension of the finite Galois extension $L/F$. By the [Primitive Element Theorem](/page/Primitive%20Element%20Theorem), there exists $\theta \in L^S$ such that $L^S=F(\theta)$. Hence the minimal polynomial $m_\theta \in F[X]$ has degree
\begin{align*}
\deg m_\theta=[L^S:F],
\end{align*}
which is odd. If $[L^S:F]>1$, then $m_\theta$ is an irreducible polynomial of odd degree greater than $1$. By the hypothesis on odd-degree polynomials, $m_\theta$ has a root in $F$, contradicting irreducibility unless $\deg m_\theta=1$. Therefore $[L^S:F]=1$, so $L^S=F$, and [the Galois correspondence](/theorems/1898) gives $S=G$. Thus $G$ is a finite $2$-group.
Since $E \neq K$ and $E \subset L$, the subgroup $H=\operatorname{Gal}(L/K)$ is nontrivial. As a nontrivial finite $2$-group, $H$ has a subgroup $H_0 \leq H$ of index $2$. By the [Fundamental Theorem of Galois Theory](/page/Fundamental%20Theorem%20of%20Galois%20Theory), the fixed field $L^{H_0}$ is a quadratic extension of $K=L^H$, contradicting the fact that $K$ has no quadratic extension. Therefore no such $E$ exists, and $K=F(i)$ is algebraically closed.
Hence condition $3$ implies condition $2$.[/step]