Shaunak does not know that what type of image is formed by the pinhole camera. Shaurya stated two statements:
Statement 1: The image formed by the pinhole camera is real and erect.
Statement 2: Image formed by the pinhole camera is real because there is refracting or reflecting optical elements to change the path of rays of light.
Both the statements are wrong
Image formed by the pinhole camera is inverted and upside-down. Image formed by the pinhole camera is inverted because there is no refracting or reflecting optical element to change the path of the rays of light.