To solve this question, the user needs to know the definitions of Knights, Knaves, and Normals, and how they behave when they are asked questions. The user must also understand the context of the inhabitant's statement and analyze it to determine their true identity.
Now, let's go through each option and explain why it is right or wrong:
A. Knight: This option cannot be correct since Knights always tell the truth, so if the inhabitant was a Knight, their statement "I'm no Knight" would be a lie, which contradicts the definition of a Knight.
B. Knave: This option cannot be correct since Knaves always lie, so if the inhabitant was a Knave, their statement "I'm no Knight" would be a lie, which contradicts the definition of a Knave.
C. Normal: This option is correct. Normals sometimes tell the truth and sometimes lie, so the inhabitant's statement "I'm no Knight" could be true or false. If the inhabitant is a Normal and is telling the truth, it means they are not a Knight, which would make them either a Knave or a Normal. If the inhabitant is a Normal and is lying, it means they are a Knight, which again would make them not a Knight. Therefore, the inhabitant must be a Normal.
D. None: This option is not correct since we have already determined that the inhabitant is a Normal.
The Answer is: C. Normal