keesiemeijer on "WP_Query and Pagination"

Try it with this [untested]: http://pastebin.com/JHvhye5Y

And with this in your theme's functions.php:

function my_post_queries( $query ) {
  // not an admin page and is the main query
  if (!is_admin() && $query->is_main_query()){
    // query the home page
    if(is_home()){
      $query->set('posts_per_page', 2);
      $query->set('cat', 3);
    }
  }
}
add_action( 'pre_get_posts', 'my_post_queries' );

http://codex.wordpress.org/Pagination#Removing_query_posts_from_the_main_loop