The correct answer is $\boxed{\text{(B) I and III}}$.
A carboxylic acid exhibits stereoisomerism if it has at least one chiral carbon atom. A chiral carbon atom is a carbon atom that is bonded to four different groups. The carboxylic acids in options I and III have a chiral carbon atom, while the carboxylic acids in options II and IV do not.
When a carboxylic acid is heated, it can form a cyclic anhydride. A cyclic anhydride is a ring-shaped molecule that is formed by the condensation of two carboxylic acids. The carboxylic acids in options I and III can form cyclic anhydrides, while the carboxylic acids in options II and IV cannot.
Therefore, the only carboxylic acids that exhibit stereoisomerism and also form cyclic anhydrides on heating are the carboxylic acids in options I and III.