To answer this question, we need to analyze the statement made by the inhabitant and determine their type based on their truthfulness.
The inhabitant states, "I'm no Knight."
Let's consider the possibilities for each type:
A) If the inhabitant is a Knight, they always tell the truth. Therefore, if they say they are not a Knight, it would be a contradiction. This possibility is not valid.
B) If the inhabitant is a Knave, they always lie. Therefore, if they say they are not a Knight, it would be a lie. This possibility is not valid.
C) If the inhabitant is a Normal, they sometimes tell the truth and sometimes lie. Therefore, if they say they are not a Knight, it could be true or false. This possibility is valid.
D) None is not a valid option as we have determined that the inhabitant can be a Normal.
Based on our analysis, the correct answer is C) Normal. This option is correct because a Normal inhabitant can sometimes tell the truth and sometimes lie, so their statement "I'm no Knight" could be either true or false.