An other way to look at the problem is below :
It is given that p, r, s, t u are an arithmetic sequence.
So, think 'k' is the constant
the sequence would be :
p, p+k, p+k+k, p+k+k+k, p+k+k+k+k
p, p+k, p+2k, p+3k, p+4k
I) Multiplying by 2 would make essentially the same sequence - so, TRUE
2p, 2p+2k, 2p+4k, 2p+6k, 2p+8k
II) Subtracting 3 would also make essentially same sequence - so, TRUE
p-3, p+k-3, p+2k-3, p+3k-3, p+4k-3
III) Squaring the numbers, however, would be different.
p^2, (p+k)^2 might be way off because of the squaring. so, FALSE
The point to take is that adding or multiplying any sequence with a constant basically keeps the sequence similar but squaring the elements with a constant will produce a different sequence.
Hope this helps.