Hi Ann - that's an excellent question! In fact, it's the English interpretation of 'third' that's "not correct" and the subject of some controversy.
A French demographer, Alfred Sauvy, coined the term "tiers monde" in an article published in the French magazine L'Observateur in 1952. The idea was that the world was divided into three parts, so "third" was indeed used in the sense of a fraction. The English interpretation however, has shifted over time, and become associated more with the ordinal sense of "third" as a position in some socioeconomic hierarchy, rather than the cold war political alliance groupings that gave the term its origin.
Hope that's helpful!
Gruff
Note: The first third referred to NATO countries and their allies, the second third referred to Russia and communist bloc and allies, the final third was all other countries.