 Solution

Identify the projective line with one-dimensional subspaces of ${\mathbb{F}}_p^2$: use $v_t=(t,1{)}^T$ for finite $t$, and $v_{\infty }=(1,0{)}^T$. This convention turns the matrix action into the stipulated Möbius transformation.

Since $x$ and $z$ are distinct projective points, $v_z,v_x$ are a basis. Write $v_y=A{v}_z+B{v}_x$. Both $A$ and $B$ are nonzero, because $y$ is different from $x,z$. The matrix with columns $A{v}_z$ and $B{v}_x$ is invertible and sends the lines of $(1,0{)}^T,(0,1{)}^T,(1,1{)}^T$ to those of $z,x,y$, respectively. This constructs the requested map without separate exceptional formulas at infinity.

A matrix fixing $0$ and $\infty$ is diagonal, say $\mathrm{diag}(a,d)$ with $a,d\ne 0$. To fix $1$ it must also satisfy $a=d$, so the stabilizer subgroup of $(0,1,\infty )$ is precisely $\{\lambda I:\lambda \in {\mathbb{F}}_p^{\times }\}$. Any two solutions differ on the right by one of these matrices. ThusEquivalently, after dividing out scalar matrices the projective general linear group action on the projective line is sharply three-transitive on a projective line.