Bavaria has had 3 Army Corps during the Imperial time and the C/III indicates that the holster belonged to a unit of the III Bavarian Army Corps. One can found the C/I to III only on 1918 dated holsters and that has the same meaning as the LZA stamps on Prussian holsters....
By the way: The tool has the (DWM/ Spandau) C/F acceptance and I think there is a letter or a number on the bended part of the tool. There is a (DWM/ Spandau) C/I tool that looks very similar to the C/F tool.
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