Yes. A propeller works on a slightly different principle. The shape of the propeller induces a pressure differential between the front and back of the prop. That differential induces the thrust.

Of course the third law applies, but also Bernoulli's principle (the same thing that makes a plane fly). A prop blade is a kind of wing, except that the rotational force is converted to thrust instead of lift. (Well, I guess on a helicopter, it's also converted to lift, but probably not a boat prop.)