Pin 1 (VCC 5v) is the positive line. You will want to cut it in the middle. One side will go to the top or the bottom (doesn't matter which) pin on the switch. The other side will got to the middle pin of the switch. Whichever (top or bottom) pin that is left will not be connected to anything. That is really not an ideal switch for this because it is an on/off/on switch. You can however make it switch on either way (up or down) if you connect the two outside pins on the switch with a small piece of wire.
All you are doing is breaking the power to the board. It is a very simple on/off situation. You have slightly complicated it by the switch you have, but nothing that can't be worked around. Middle position on the switch will be off.