The He-3 transverse electron scattering response function R-T(q, omega) is calculated in the quasi-elastic peak region and beyond for momentum transfers q = 500, 600 and 700 MeV/c. Distinct from our previous work for these kinematics where we included meson exchange currents and relativistic corrections we now additionally include Delta isobar currents (Delta-IC). The Delta-IC contribution increases the quasi-elastic peak height by about 5% and leads to an excellent agreement with experimental data in the whole peak region. In addition it is shown that effects due to the three-nucleon force largely cancel those due to the Delta-IC in the peak region. Finally, we have found that Delta-IC are important for three-body break-up reactions in the so-called dip region. This could explain why in a previous study of such a reaction, where Delta degrees of freedom were not included, no agreement between experimental and theoretical results could be obtained. (C) 2011 Elsevier B.V. All rights reserved.