Thanks for the quick response. I am attaching it with this post, since I am currently testing this as a way of bulk importing questions to moodle there are only 3 questions in that file.
I managed to get it working under HotPot activity like many have suggested here (upload the entire zip file and then unzip). However, it doesn't seem to be possible with the moodle's question bank import function. I like the Moodle's Quiz module better.
In the meanwhile I found a workaround, here's what I did.
- Created the quiz with images present in the local folder.
- Uploaded the folder containing all images onto the moodle server.
- Pasted the URL location of the folder on my server with the html tag. Something like from <img src="1.png" alt="1.png" ></img> to <img src="10.0.2.115/test/1.png" ></img>. One could directly use "insert picture from web URL" but I found this easier in my case.
- Did a standard moodle question bank import of the HotPot xml file.