A remote pilot plans to conduct sustained flight over spectators with a Category 3 small UAS during an outdoor sporting event. The small UAS complies with all Category 3 requirements and is properly labeled and declared. This operation:

A remote pilot in command (PIC) plans to operate a Category 3 small unmanned aircraft over unprotected people between 9:00 p.m. and 10:00 p.m. local time. The aircraft meets all Category 3 eligibility requirements prescribed by its manufacturer declaration, and the operation will be conducted within visual line of sight (VLOS) using manufacturer-approved position lighting. Is this operation permitted under Category 3?