World War III?

Bush, speaking about Iran at yesterday’s press conference.

"So I've told people that, if you're interested in avoiding World War III, it seems like you ought to be interested in preventing them from having the knowledge necessary to make a nuclear weapon," said Bush.”

Who are these “people” he said this to and what did they say?

Why in the world, while we are still up to our asses in war in Iraq and Afghanistan, would he even mention WW III? Who would start World War III?
Has he lost what little mind he had? Doesn’t he realize that to many this may sound like a threat? Maybe it is.

(quote source)