Sarah drinks about 224 ounces of water each week. She would like to increase this amount by 5% each week. How much water will she drink after the third week of increase? Round your answer to the nearest ounce.

After the first week, Sarah will increase her water intake by 224 ounces * 5% = <<224*5*.01=11.2>>11.2 ounces.

So on the second week, she will drink 224 + 11.2 = <<224+11.2=235.2>>235.2 ounces of water.
After the second week, her water intake will be increased by 235.2 * 5% = <<235.2*5*.01=11.76>>11.76 ounces.
So on the third week, she will drink 235.2 + 11.76 = <<235.2+11.76=246.96>>246.96 ounces of water.
Rounded to the nearest ounce, she will drink 247 ounces of water. Answer: \boxed{247}.