Concept:In a pinhole camera, light travels in straight lines and forms an image on a screen.
Explanation:The image formed on the screen is real because it can be seen on the screen.
So, statement II (virtual) is incorrect.
The image is upside down compared to the object, so it is inverted.
Thus, statement I is correct.
In a usual pinhole camera, the image is smaller than the object, so it is diminished.
Thus, statement III is correct.
Therefore, only statements I and III are correct.
Answer:C. I and III only