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'd say D because it says "if they ever should use it in earnest against each other, it will surely split." Government only has as much power as the people let it have
I’m pretty sure that it’s omniscient :)
This is true. A thesis statement is you opinion. This means that not everyone will agree with your opinion. For example:
Smoking should be illegal because it is unhealthy, costly, and an annoyance.
Though you supported your opinion, someone who enjoys smoking may say that it is not costly or annoying. This is why a thesis statement is controversial.