Concept:
Histamine is a biologically active amine released from mast cells and basophils during allergic reactions and inflammatory responses.
It plays an important role in vasodilation, allergic reactions, gastric secretion and inflammatory processes.
Step 1: Analyse Statement I
Histamine causes dilation of blood vessels.
Therefore:
\[
\boxed{\text{Statement I is correct}}
\]
Step 2: Analyse Statement II
Histamine does not lower blood pressure by constricting blood vessels.
In fact, it causes vasodilation.
Therefore:
\[
\boxed{\text{Statement II is incorrect}}
\]
Step 3: Analyse Statement III
Histamine is released during allergic reactions and contributes to:
• Sneezing
• Nasal congestion
• Runny nose
• Inflammation
Hence:
\[
\boxed{\text{Statement III is correct}}
\]
Final Conclusion
Correct statements are:
\[
I \text{ and } III
\]
Hence the correct option is
\[
\boxed{\text{(C)}}
\]