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PEJORATIVE: A word expressing contempt, disapproval, insult (noun); Expressing contempt or disapproval or suggesting that something is not good or is of no importance (adjective). Statement I uses the word as an adjective correctly. In statement II, 'pejorative' is used as an adjective; the use of 'pejorative' is correct here as it explains that the customer may not return to business if the subject makes a derogatory remark in front of the customers. In statement III, the use of 'pejorative' is correct; the sentence mentions that 'pejorative' is used as a noun, a word made by taxi drivers to describe a kind of a person. Hence, option (a) is the correct answer.