For some time people have been asking for a way to embed an Image into Google Forms. At the surface, this is not possible. However, if you are not afraid of a little HTML cracking - it is feasible. I posted the process in a Google Group to which I belong and my friend Aida Awad took that information and posted this example on her Google site. Rather than reinvent the wheel I will let you go there to find out the details.
However, there is a small caveat to the process. If you are using an image you have hosted through Google you may run into links that look like this (example only not a live site): https://6550769187146519263-a-1802744773732722657-s-sites.googlegroups.com/site/techstuff/form-using-images/1image.png?attachauth=ANoY7coIQOFzq9C_0ehRIdzhR7mEuyoJdblpmraepoBeJR66TWpUuXZ-ueBwnM8AfRWOPZZPUNgUbtx0TbkPUq-swMUpa1D2wdJ4IJA151x5XVmBmWsmsGRD-45EXSbvj1fJggGbictsfHPnCCRsZmmVNiOO2gZ4foIKgj8dZIM6tvgjzkj1FufJItfFC_uCIU3rXhlX4xRIGORqXdOSqhUeuIFcX90KFx7aWdOXsiutQa9WJdAu6yg%3D&attredirects=0
Of course placing this into an img tag, does not work so well. The img tag should end with an image extension like .jpg, .png or .gif. So one would think that just trimming the link back to the 1image.png would solve the problem, but it doesn't. Instead you must first embed the image into your site and then view the source code copying the path from there. It should look more like this: http://sites.google.com/site/techstuff/home/1image.png
(Again I stripped the "s" off of the http and the link above is dead and only used for example purposes.)
Once you have this path you can use it in your img html code and remove the image from the site. Just don't delete where you originally uploaded it too.
Wow! What an adventure that was trying to figure out. Good luck and if you need any help; with the process feel free to leave a comment below.