Step 1: Set up the ratio:
Since $E_n \propto \frac{1}{n^2}$, we can write $\frac{E_3}{E_1} = \frac{1^2}{3^2}$.
Step 2: Substitute:
\[ E_3 = E_1\times\frac{1}{9} = (-E)\times\frac{1}{9} = -\frac{E}{9} \]
The third orbit is less tightly bound than the ground state, so its energy is closer to zero. This matches option (C).
Final Answer:
Energy of the third orbit is $-\frac{E}{9}$ J.
\[ \boxed{-\frac{E}{9}\text{ J}} \]