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In the two previous papers of this series we defined a new combinatorical approach to quantum gravity, Algebraic Quantum Gravity (AQG). We showed that AQG reproduces the correct infinitesimal dynamics in the semiclassical limit, provided one incorrectly substitutes the non -- Abelean group SU(2) by the Abelean group $U(1)^3$ in the calculations. The mere reason why that substitution was performed at all is that in the non -- Abelean case the volume operator, pivotal for the definition of the dynamics, is not diagonisable by analytical methods. This, in contrast to the Abelean case, so far prohibited semiclassical computations. In this paper we show why this unjustified substitution nevertheless reproduces the correct physical result: Namely, we introduce for the first time semiclassical perturbation theory within AQG (and LQG) which allows to compute expectation values of interesting operators such as the master constraint as a power series in $\hbar$ with error control. That is, in particular matrix elements of fractional powers of the volume operator can be computed with extremely high precision for sufficiently large power of $\hbar$ in the $\hbar$ expansion. With this new tool, the non -- Abelean calculation, although technically more involved, is then exactly analogous to the Abelean calculation, thus justifying the Abelean analysis in retrospect. The results of this paper turn AQG into a calculational discipline.

In the previous article a new combinatorial and thus purely algebraical approach to quantum gravity, called Algebraic Quantum Gravity (AQG), was introduced. In the framework of AQG existing semiclassical tools can be applied to operators that encode the dynamics of AQG such as the Master constraint operator. In this article we will analyse the semiclassical limit of the (extended) algebraic Master constraint operator and show that it reproduces the correct infinitesimal generators of General Relativity. Therefore the question whether General Relativity is included in the semiclassical sector of the theory, which is still an open problem in LQG, can be significantly improved in the framework of AQG. For the calculations we will substitute SU(2) by U(1)^3. That this substitution is justified will be demonstrated in the third article of this series

We introduce a new top down approach to canonical quantum gravity, called Algebraic Quantum Gravity (AQG):The quantum kinematics of AQG is determined by an abstract $*-$algebra generated by a countable set of elementary operators labelled by an algebraic graph. The quantum dynamics of AQG is governed by a single Master Constraint operator. While AQG is inspired by Loop Quantum Gravity (LQG), it differs drastically from it because in AQG there is fundamentally no topology or differential structure. A natural Hilbert space representation acquires the structure of an infinite tensor product (ITP) whose separable strong equivalence class Hilbert subspaces (sectors) are left invariant by the quantum dynamics. The missing information about the topology and differential structure of the spacetime manifold as well as about the background metric to be approximated is supplied by coherent states. Given such data, the corresponding coherent state defines a sector in the ITP which can be identified with a usual QFT on the given manifold and background. Thus, AQG contains QFT on all curved spacetimes at once, possibly has something to say about topology change and provides the contact with the familiar low energy physics. In particular, in two companion papers we develop semiclassical perturbation theory for AQG and LQG and thereby show that the theory admits a semiclassical limit whose infinitesimal gauge symmetry agrees with that of General Relativity. In AQG everything is computable with sufficient precision and no UV divergences arise due to the background independence of the undamental combinatorial structure. Hence, in contrast to lattice gauge theory on a background metric, no continuum limit has to be taken, there simply is no lattice regulator that must be sent to zero.