Step 1: This is a true-except question on trachoma, so we confirm each correct fact and isolate the wrong one.
Step 2: The cause is Chlamydia trachomatis, classed as a bedsonian organism in the PLT group, and the blinding serotypes are A, B, Ba and C. Both of these match standard teaching, so they are not the answer.
Step 3: The staging follows McCallan. Stage I shows immature follicles, stage II shows mature follicles with papillae and pannus, stage III is the scarring (cicatrising) stage, and stage IV is the sequelae stage. Active follicular and papillary changes belong to the early stages, not stage III. So the claim that marked papillary hyperplasia with limbal follicles is seen in stage III is incorrect.
Step 4: Corneal ulceration is a recognised complication, so it is a true statement. The single false statement is option c.
\[\boxed{\text{Marked papillary hyperplasia with limbal follicles in stage III}}\]