Your instructor is probably expecting the answer B) III only.
III) The evolution or absorption of heat is evidence of a chemical change.
I) Boiling water and IV) mixing paint are physical changes.
II) A change in colour on mixing is usually an indication of a reaction (but not when mixing paint). However, in this case, the lighter blue colour might have happened simply because you are diluting the solution. You would have to do an experiment which is correct.