What is an Arcane Archer’s spell progression?

I have a character that is going to be a level 4 Arcane Archer (3 levels Draconic Sorcerer, 5 levels ranger), and I am a little confused on the wording in the Pathfinder Corebook.

At the indicated levels, an arcane archer gains new spells per day as if he had also gained a level in an arcane spellcasting class he belonged to before adding the prestige class. He does not, however, gain other benefits a character of that class would have gained, except for additional spells per day, spells known (if he is a spontaneous spellcaster), and an increased effective level of spellcasting.

Does this mean that I get level 3 spells at the appropriate AA level? Or do I remain at the 2nd level spells, and just the effects (and spells known) gets boosted?