SB defense when the SB is 2/3

[jediael]

I have some difficulties properly defending my small blind in the Party 15 game. In that game, the small blind is 10$.

According to PokerTracker, my folded SB to steal is 78%, which I feel is too high. In comparision, my folded BB to steal is 44%.

My problem is two-fold. Say the CO with a attempt to steal the blinds of about 35% open raises. I am in the small blind. With which hands (rougly) should I defend, and with which hands of those should I 3-bet? Many books advocate to either 3-bet or fold in the SB in these situations, however, I feel that the fact that the SB is 2/3 changes the situation quite a bit.

What's your opinion on the issues?