Concept:Reducing the size of the pinhole limits the spread of light from each point on the object, making the image sharper.
Explanation:A pinhole camera forms an image when light from each object point passes through the small hole and falls on the screen.
When the hole is diminished, only a very narrow beam of light from each point enters the camera.
The result is that each object point produces a much smaller spot of light on the screen.
Smaller spots overlap less with neighbouring spots, so the image details become more distinct.
Therefore, the image becomes sharp.
Statement II (sharp) is correct.
Statement III (poor) is wrong because the image quality actually improves.
Although a smaller hole admits less light, the main effect tested here is the gain in sharpness, not darkness.
Hence, the correct option is B.
Answer:B. II only