Can you please suggest what kind (type) of hinge / pins I should use to make the mechanism in the attached file. I was considering to use the pins shown in the second image. But I am not sure if it will work.
What is shown in the picture is what people usually refer to as a pin connection. There are multiple ways you can design a pin connection as suggested in the comments above and there is no one right design for it. Disregarding practical considerations, such as materials, load cycles and etc, and in pure design engineering terms, you will need to find the shear strength of the items you have selected for your pin, and make sure it is reasonably stronger than what you have calculated for the shear load on the pin based on the configuration you have. The shear load on the pin can be determined from the normal force at the pin connection, and ut can be something less if you have double shear or triple shear mechanisms in your pin connection in question.