The following are the Dip Switch settings based off of MAME 0.180 source code.
 
Use this information at your own risk!  The information was parsed from the MAME source code and could contain errors as to the state, order or descriptions of what the switches do.  If you find an error, please let me know on the Contact Us form and I will work on correcting the issue. 
 
 
 
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Manufactured by bootleg, Released in 1988
ROM Version: Wonder Boy III - Monster Lair (set 1, Japan, System 16A) (bootleg of FD1094 317-0084 set)
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Dip Switch:SW2
12345678FunctionOption
 Off      Demo SoundsOff
 On      On*
  OnOn    Lives2
  OffOff    3*
  OnOff    4
  OffOn    5
    Off   Bonus Life50k/100k/180k/300k*
    On   50k/150k/300k
     On  DifficultyHard
     Off  Normal*
      Off Test ModeNo*
      On Yes
ROM Version: Wonder Boy III - Monster Lair (set 2, Japan, System 16B) (bootleg of FD1094 317-0085 set)
Print
Dip Switch:SW2
12345678FunctionOption
 Off      Demo SoundsOff
 On      On*
  OnOn    Lives2
  OffOff    3*
  OnOff    4
  OffOn    5
    Off   Bonus Life50k/100k/180k/300k*
    On   50k/150k/300k
     On  DifficultyHard
     Off  Normal*
      Off Test ModeNo*
      On Yes
ROM Version: Wonder Boy III - Monster Lair (set 3, World, System 16B) (bootleg of FD1094 317-0089 set)
Print
Dip Switch:SW2
12345678FunctionOption
 Off      Demo SoundsOff
 On      On*
  OnOn    Lives2
  OffOff    3*
  OnOff    4
  OffOn    5
    Off   Bonus Life50k/100k/180k/300k*
    On   50k/150k/300k
     On  DifficultyHard
     Off  Normal*
      Off Test ModeNo*
      On Yes
ROM Version: Wonder Boy III - Monster Lair (set 4, Japan, System 16B) (bootleg of FD1094 317-0087 set)
Print
Dip Switch:SW2
12345678FunctionOption
 Off      Demo SoundsOff
 On      On*
  OnOn    Lives2
  OffOff    3*
  OnOff    4
  OffOn    5
    Off   Bonus Life50k/100k/180k/300k*
    On   50k/150k/300k
     On  DifficultyHard
     Off  Normal*
      Off Test ModeNo*
      On Yes
ROM Version: Wonder Boy III - Monster Lair (set 5, Japan, System 16A) (bootleg of FD1089A 317-0086 set)
Print
Dip Switch:SW2
12345678FunctionOption
 Off      Demo SoundsOff
 On      On*
  OnOn    Lives2
  OffOff    3*
  OnOff    4
  OffOn    5
    Off   Bonus Life50k/100k/180k/300k*
    On   50k/150k/300k
     On  DifficultyHard
     Off  Normal*
      Off Test ModeNo*
      On Yes
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