1x3 means one row and three columns. Three panels side by side, each a third of the width and the full height. If you wanted three stacked strips instead, that is 3x1, three rows and one column, and it is the arrangement people mix this up with most often.
The convention is rows first, columns second, everywhere on this site. Read 1x3 as "one row, three columns" and the shape follows.
What you get depends entirely on the source. A 3000 × 1000 panorama gives three 1000 × 1000 px panels, close to square. A 1080 × 1350 portrait gives three 360 × 1350 px panels, narrow and tall. The panels are always the full height, which is what makes this arrangement work for triptychs and carousels and not much good for anything that needs to be read top to bottom.
Both seams are draggable, and this is worth doing before you export rather than after. Three equal thirds put two vertical lines through the middle of the frame, which is exactly where a face or a subject tends to sit. Move a seam ten percent either way and the panels usually improve.
The split runs on a canvas inside the page. Your image is read, cut and handed back without ever going to a server.