Personally, I would address the problem, explaining to your audience that you've lost your "train of thought" from there, make fun of the situation, say "let's see, where was I?" * recieve an answer from audience * then continue one.
To sum it, make fun, and a light hearted joke about it, and continue to your best ability.
The correct option is III, I AND II.
The first sentence is a quotation, the second sentences is a paraphrase while the third statement is an attribution. A quotation refers to direct importation of the words said by another person, such words are usually placed inside quotation marks.
I want to say susan. i appologize if it's wrong.