The given statement is False. A pinhole camera can form an image bigger than the object too. Pinhole camera forms real, upside down and the size of the image depends on the distance between the pinhole and the screen on which image is formed. Pinhole camera works on the principle of rectilinear propagation of light. Light falls from the object through the pinhole and forms a smaller image on the translucent screen if the pinhole and the screen are closer to each other. If the distance between the pinhole and the screen is increased then it can form an even bigger image than the object.