The metal rod is not going to do much. It's really to burnish the edge and straighten out the edge of kitchen knives between sharpening. It helps restore the edge but does not sharpen.
Since you bought a 3 stone kit, the fine stone should be sufficiently fine to proceed to stropping afterward. I'm guessing you have a coarse synthetic stone, a medium Arkansas stone and a fine Arkansas stone.
There are several grades of fine stones, and the ones in kits are generally not the finest grit but fine enough for most people. You can buy a separate stone to get an extra grit step but that's optional.
I suggest going to the strop at this point. You can use it w/o any compound but it's much faster if you use some. White compound is made with aluminum oxide and vary greatly in grit size in the 2 to 10 micron range. The problem with most compounds is that they don't specify the grit size. Green compound is made with chromium oxide and it usually between 0.5 to 1.5 microns in size. These ranges are based on my limited experience so take it with a grain of salt.
I use jacksonlea C-5 (2 microns) which is a very fine white compound and good quality green compound (0.5 micron). The grit sizes were verified with the manufacturer or was labeled as such. I also have a bar of white compound from Sears but I have no idea what it is.
Ignoring the small details for now, any white compound made with aluminum oxide will be a good choice for a knife. The green is normally used for straight razors and is overkill for knives.
