Step 1: Plasmids are extrachromosomal, circular DNA molecules that possess their own origin of replication.
Hence, statement I is correct.
Step 2: In genetic engineering, a hybrid (recombinant) plasmid carrying foreign DNA is commonly introduced into bacterial cells by the process of transformation.
Hence, statement II is correct.
Step 3: Bacteriophages are viruses that infect bacteria and contain their own viral genome.
Plasmids are not found in bacteriophages; they are independent replicons mainly present in bacteria (and some eukaryotes like yeast).
Hence, statement III is incorrect.