A British newspaper says it has video footage of Prince Harry allegedly using offensive and racist language. The News of The World reported that Harry, third in line to the British throne, used offensive terms to refer to people from Pakistani and people of Arab descent. Britain's St. James's Palace - the office of Harry and his elder brother Prince William - said on Saturday that Harry was sorry for any offense caused. The newspaper said the video was recorded three years ago. It alleged he called one person a "paki" and referred to others as "ragheads." St. James's Palace said Harry didn't intend any malice and understands how offensive the term "paki" can be. Harry last year served with the British Army in Afghanistan.