Final answer:
The statement is true; Category III pesticides must be labeled with the signal word 'Caution', as required by the EPA to indicate moderate toxicity and ensure user safety.
Step-by-step explanation:
The statement that Category III pesticides must be labeled with the signal word "Caution" is True. In the United States, the Environmental Protection Agency (EPA) classifies pesticides into different categories based on their toxicity. The categories range from I to IV with I being the most toxic. Products in Category III are moderately toxic, and as such, the EPA requires these products to carry the signal word 'Caution' to alert users to the potential risks. The signal words for pesticidal products help users identify the level of toxicity and take appropriate safety measures when handling them.