Please tell me if my answer to this question is correct.
My answer is: The pressure exerted by the air around us is known as atmospheric pressure. The higher we go above the sea level, the lower the pressure is going to be due to the atmosphere. We can see that in diagram 3 it has the smallest height. This means that the case in which the apparatus is at the greatest above the sea level is answer: diagram 3

Solution
Yes your answer is right.
 The higher we go above sea level, the lower the pressure is going to be due to the atmosphere. This is because there’s gonna be less atmosphere above us pushing down. So if we’re at our greatest high above sea level, that means that we have the smallest atmospheric pressure pushing on our apparatus. So we’re looking for the case that would then have the smallest height within the test tube. When comparing the height of liquid mercury in each of the test tubes, we can see that in case III, it has the smallest height. This means that the case in which the apparatus is at the greatest height above sea level is case III. 

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