When you mouse over the links inside the nav, their background color will change to grey by default.
If you want a different background color on hover, use any of the w3-hover-color classes, and if you want a different text color on hover, use any of the w3-hover-text-color classes.
Hover background color:
Hover text color (You can turn off the default hover effect with the w3-hover-none class. This is often used when you only want to highlight text color (and not background color) on hover):