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Both I and III have used the word correctly. FORFEIT, as a verb, means to lose or be deprived of (property or a right or privilege) as a penalty for wrongdoing. Sentences I uses this word to describe situations where something is lost or given up due to certain conditions or actions. In a broader sense, FORFEIT can also mean to give up or surrender something voluntarily. Sentence III uses this word to describe an athlete's willingness to give up personal ambitions for the benefit of the team. Therefore, C is the correct answer.
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