Hi Lawrence,
"Situation" can refer to the location of a place. It can also refer to a set of circumstances or conditions we find ourselves in.
Example: The situation (location) of the villa offers stunning views of the waterfall. / His addiction to heroin landed him in a miserable situation (condition that leads to misery).
"Circumstance" is used to refer to conditions that can affect something else. Usually, these are negative conditions.
Example: The explorers wanted to continue their expedition to the South Pole, but were forced to turn back due to unfavaourable circumstances. / If circumstances permit, we will tour the city.
The "environment" is your surroundings, and its conditions. Your environment can be your room or your neighbourhood. You can have a pleasant environment or a noisy one.
Hope this helps.
Cheers,
Lance