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.
Maybe your brain is like, you're so right you outta be left. LOL
William Gilmore Simms deserve to be known and studied by many because he has good stories and his humor is good. His choice of topics, characterization, format and narrative power proves that Simms is a master storyteller.