Yup 3 levels total for characters to advance in. Your XP still is used for improving skills but Gielp (Glory) measures your advancement in level. Gielp is gained by successfully completing missions and being rewarded by your lord. The Glory (Gielp) you get from gifts/ rewards is the value that applies to raising your level!
Like HOW, you roll 3 dice and compare to your IQ+level, trying to roll under it. Unlike HOW, the spells and magic work a little differently. Not all spells cost EN, and none of the spells from HOW or Magic Carta work. Only Wizards can learn spells and then only from their specific class!
Also note, Magic does NOT level up like skills with XP, instead your Level is the bonus applied as a bonus to your casting attempts. So level 1 adds +1, Level 2 adds +2 and level 3 adds +3.
That's just a very high level look at what's to come!