$\text{Every matrix $A$ of size $m\times n$ can be represented as a linear transformation or a map from $\mathbb{R^n}\rightarrow \mathbb{R^m}$}$
$\text{So, here, think linear transformation T as a matrix A of size $3 \times 3$}$
$\text{It means, $A^3 – A^2 – A + I = 0$ }$
$A^2(A-I)-I(A-I) = 0$
$(A^2 – I)(A-I) = 0$
$\text{It means, Either $A^2 – I = 0$ or A-I=0}$
$\text{i.e. $A^2 = I$ or A=I}$
$\text{i.e. $A^{-1} = A$ or $A^{-1}=I$}$
$\text{It means, matrix $A$ is invertible.}$
$\text{matrix $A$ is not necessarily diagonalizable}$
$\text{Counterexample when $A^2 = I$:} $\begin{bmatrix} 1 &0 &0 \\ 0 &0 &1 \\ 0&1 &0 \end{bmatrix}