The statement 'When performance falls within applicable tolerances for that device, the device is said to be accurate' is

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Accuracy is about how close a measurement is to the true value. Tolerances are the allowed range of deviation defined for a device. If the device’s performance stays within those defined tolerances, its measurements meet the specified accuracy for that device. So the statement is true because being within the acceptable error margin means the device is operating accurately according to its specifications.

Note: a device can be precise (consistent results) but not accurate if there’s a systematic bias outside the tolerance; staying within tolerance means both reliability and adherence to the specified accuracy at that time and condition.