This is a Kaplan one, and PKW nailed the solution.
Remember, when dealing with complex permutations, a common trap is to work super hard on breaking down all the little outcomes to solve bit by bit. We could figure out the number of combinations of 3 different gemstones, then figure out the number of organizations of 2 and 1 (xxy, xyx, yxx) and work from there as well. But it's much simpler to figure out what DOESN'T count: three of the same stone.
So, since there are 5 possibilities for the first stone, 5 for the second, and 5 for the third, that gives us 5 x 5 x 5 gemstone combinations. But, some don't count: those with no stones different. Clearly, there are five total invalid combinations, one for each of the five types of stone. so, 125 - 5 = 120 possible rings.