A few weeks ago, Google released a new update to Google Forms. You can now add images to the question and also in the multiple choice answer options. In the past, if you wanted to add an image to the form you would click on the image icon on the right side toolbar. Now when you type out your question, click the image icon on the right side of the question.
To add images as answer choices, click into the first answer space, and then click the image icon on the right-hand side. Upload or select your image. Repeat for other answer choices.
To learn more about this new feature, visit https://goo.gl/VvkgCD