This is a first round tune-up for Magneto and Mario, a team that I have pegged as the eventual winners of this tournament, and a powerful duo regardless of what I think.
Some might argue that Link has a magical arsenal that he can employ even if Magneto renders Link's metal weapons and armor useless (which I reckon is just about all of his weapons and armor), but it seems unlikely that Magneto would merely strip Link of his weapons and not use them against Hyrule's hero. Why not just detonate one of those bombs Link seems to be so fond of carrying around? Why not strangle him with his own chain mail under his armor? Why not bend Link's shield around him so that he's completely bound and incapacitated?
Magneto could defeat Link in all sorts of juicy ways, and that's without teaming up with Mario.
That leaves Gambit, and I think a lot of you are underselling Gambit vs. Magneto. Gambit is often seen as the charming goof of the X-Men, but when he needs to get his ass in gear, Gambit is as deadly as they come. His powers are so vast that he can spread his kinetic energy charge to any object in his field of vision, perhaps farther. He's also pretty handy at field combat and knows how to handle himself in even the toughest battles.
That said, this is Magneto, one of the most powerful mutants on Earth, and that's still discounting his wisdom and battle prowess. Combine that with Mario, a guy that will run through hoards of angry monsters, flying bullets (bills), cannon fire, and all sorts of traps, and Gambit is going to be overwhelmed very quickly. I'd wager that Gambit would actually be knocked out by Mario before Magneto. Magneto will distract Gambit by throwing a car at him, and Mario will charge at him and land one of his signature jumping uppercuts that will knock Gambit the fuck out.
Sad to see Gambit go in the first round, but hey, he lost to what may be the best team in this tournament.