Hi,
Try and back up your data but be aware by doing this you may cause more damage to the Ipod and still not retrieve your data anyway.
As you know water and electronics and electricity are not a good mix.
The water causes corrosion and provides circuit paths for the electricity which were not in the Ipod's operating design and could damage the components.
Rice is good to eat but does nothing to fix the problems caused by corrosion.
Don't Put Your Device in Rice. Here's Why...
First do not turn on your Ipod and then you need to remove the battery as soon as possible from the Ipod to minimize further damage.''
Then you need to dis-assemble the rest of the Ipod and clean all the affected parts using Isopropyl Alcohol 90%+ to remove all traces of corrosion and water. Do not use "rubbing alcohol" as in some cases this is only 70% and is not as effective. If you do check the label to verify the amount
Here is a link that in general, describes the process.
Electronics Water Damage
You may have to replace the battery as it is very hard to recover a battery from water damage.
As always with electronics, especially surface mounted PCBs be gentle when handling and especially when brushing away the corrosion. You do not want to remove any components from the board.
Hopefully after you have done all this the Ipod might possibly work correctly again.
Here is a link to the ifixit guide(s) for repairing your Ipod.
iPod Touch 3rd Generation
If this process seems too daunting, take your Ipod to a reputable, professional electronics / mobile phone repair service and ask for a quote for a repair.
If you decide to do this, do it sooner than later.