In this paper, we look at triangle-free graphs with maximum degree three. By an inequality proved by K. Fraughnaugh in 1990, the number of vertices , edges , and independence of such a graph satisfy . We prove that there is a unique non-cubic, connected graph for which this inequality is sharp. For the cubic case, we describe a computer algorithm that established that two such extremal cubic graphs exist with , and none for or . We give a complete list of cubic, and provide some new examples of non-cubic, triangle-free graphs with and independence ratio less than .