Take it in steps.
Step 1: Implement on how to unzip in C#
Step 2: Implement on how to display image from a folder location.
Step 3: Combine 1 & 2
For Step 1, look here: How to unzip file in c#.net
Step 2 is straight forward - just provide the proper source link to the image.
Try out and specific issue if you face any.