Z3 is not particularly tuned for proving theorems in universal algebra. Theorem provers with super-position, such as E, Spass, Vampire, are traditionally well suited for such theorems.
That said, the version of Z3 in the unstable branch has no problems. Here is what I get:
z3.exe ua.smt2 /v:10
(simplifier :num-exprs 23 :num-asts 196 :time 0.00 :before-memory 2.61 :after-memory 2.61)
(smt.simplifier-done)
(smt.searching)
(smt.mbqi)
sat
(smt.simplifier-done)
(smt.searching)
(smt.mbqi)
(smt.simplifier-done)
(smt.searching)
(smt.simplifying-clause-set :num-deleted-clauses 0)
(smt.simplifier-done)
(smt.searching)
(smt.simplifying-clause-set :num-deleted-clauses 1)
(smt.mbqi :failed k!6)
(smt.simplifier-done)
(smt.searching)
(smt.simplifier-done)
(smt.searching)
(smt.mbqi :failed k!7)
(smt.simplifier-done)
(smt.searching)
(smt.simplifier-done)
(smt.searching)
(smt.mbqi :failed k!8)
(smt.simplifier-done)
(smt.searching)
(smt.simplifier-done)
(smt.searching)
(smt.mbqi :failed k!9)
(smt.restarting :propagations 0 :decisions 0 :conflicts 0 :restart 100 :restart-outer 100 :agility 0.00)
unsat
you can download the latest versions of the so-called "unstable" branch of Z3 from z3.codeplex.com > Downloads > "Planned"