Directions: A sentence is given in direct speech. Out of the four options suggested, select the one that best expresses the same sentence in indirect speech.

David said, "I had finished the report."

The correct option is David said that he had finished the report.

To convert a sentence from direct speech to indirect (reported) speech, we follow specific rules regarding conjunctions, pronouns, and verb tenses:
1. Reporting Verb & Conjunction: The sentence uses the past-tense reporting verb "said". To connect the reporting clause to the reported clause in indirect speech, we add the conjunction "that" (forming "David said that...").
2. Pronoun Change: The first-person pronoun "I" in direct speech refers to the speaker, David. Therefore, in indirect speech, "I" changes to the third-person masculine pronoun "he".
3. Tense Rules (Past Perfect Tense): The statement inside the quotation marks, "had finished", is in the Past Perfect tense. In indirect speech conversion, verbs already in the Past Perfect tense remain unchanged because there is no farther past tense to shift into.
4. Combining the components:
Direct speech: David said, "I had finished the report."
Indirect speech: David said that he had finished the report.

Thus, the correct sentence in indirect speech is "David said that he had finished the report."