Correct Answer & Explanation
Option A
• The reporting verb 'said' remains 'said' as there is no object.
• The connector 'that' is used for assertive sentences.
• The pronoun 'I' changes to 'she' (referring to the old woman).
• The tense 'Present Perfect' ('have lived') changes to 'Past Perfect' ('had lived') as the reporting verb is in the past tense.
• The demonstrative 'this' changes to 'that' in indirect speech.