Step 1: Differentiability of $f(x)$.
The function is composed of absolute value expressions $|\log x|$ and $|x-1|$. Both are differentiable for all $x>0$ except possibly at $x=1$. At $x=1$, the left-hand and right-hand derivatives of both terms exist and are finite. Hence, $f(x)$ is differentiable for all $x>0$. Therefore, statement (I) is true.
Step 2: Monotonicity in $(0,1)$.
For $0<x<1$, we have $|\log x|=-\log x$ and $|x-1|=1-x$. Thus,
\[
f(x) = -\log x - (1-x).
\]
Differentiating,
\[
f'(x) = -\frac{1}{x} + 1<0 \quad \text{for } 0<x<1.
\]
Hence, $f(x)$ is decreasing in $(0,1)$, not increasing. Statement (II) is false.
Step 3: Monotonicity in $(1,\infty)$.
For $x>1$, we have $|\log x|=\log x$ and $|x-1|=x-1$. Thus,
\[
f(x) = \log x - (x-1).
\]
Differentiating,
\[
f'(x) = \frac{1}{x} - 1<0 \quad \text{for } x>1.
\]
Hence, $f(x)$ is decreasing in $(1,\infty)$. Statement (III) is true.
Step 4: Conclusion.
Only statements (I) and (III) are true.