The term NEON'S STATE is solved by the three letter word GAS. Neon is a chemical element with the symbol Ne and atomic number 10. It is a noble GAS found in the Earth's atmosphere and is used in many applications, such as lighting and advertising signs. Neon is the fifth most abundant element in the universe and is found in all three states of matter: GAS, liquid, and solid. Therefore, the answer to the crossword puzzle is GAS, as it is the state of neon that is most commonly found on Earth.