The correct option is A II,III and V only
Incorrect statements:
Statement II: Diploblastic with cellular level of organisation
In Cnidarians the body wall is formed from two embryonic layers i.e., ectoderm and endoderm and hence they are called diploblastic animals.
In Cnidarians the cells having the same origin and common function aggregate to form tissues that perform basic life activities, thus they are said to have a tissue level of organisation. Hence statement II is incorrect.
Statement III: Polyp forms are free-living
Polyp is the sessile and cylindrical form of Cnidaria. They are not free-living. Hence statement III is incorrect.
Statement V: Polyps produce medusae sexually and medusae form polyps asexually
Cnidarians can exist in two forms, namely, sessile polyp and free-living medusa. Polyp forms medusa by asexual reproduction and medusa forms polyp by sexual reproduction. Hence statement V is incorrect.
Final answer
(d) II, III and V only