How to failover in a 3 node active passive cluster?

I have a 3 node active-passive cluster. Let us assume that Node-A, Node-B and Node-C as the 3 nodes.
Node-A is active and the remaining 2 is passive nodes. When the fail over occurs in Node-A the services must be migrated to Node-B or Node-C.

My question is how does the fail over cluster know to which node it has to transfer the services, either Node-B or Node-C in particular?

It decides based on the Preferred Owner.