At the conclusion of a sightseeing flight, the pilot was descending the balloon for landing in a field he had partially observed through trees. He reported that the wind speed was between 10-15 knots. As he vented the envelope and the field came into full view, he noted that there was "not much room to land;" estimating the field to be about 60-70 yards in length. The basket touched down hard and was dragged along the ground before coming to rest. The pilot and one passenger were not injured; the second passenger fell during the landing and sustained fractures to both arms. The balloon was not damaged. The pilot stated that the preflight passenger briefing included the proper brace position for landing. The pilot also reported there were no mechanical malfunctions or anomalies of the balloon that would have precluded normal operation.