If by "1-3 items" you mean 1-3 of the same item, modify calculate_wrap_fee_oneitem() to compute $fee based on $wrapitems. If by 1-3 items, you mean the total number of items in the cart, modify calculate_wrap_fee() to return the number of items, sum it inside the loop where calculate_wrap_fee is called, and determine the fee after the end of the loop.
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