Direct speech : - Direct speech is used to report or rather repeat the words spoken by the speaker or writer in the way it is told by the speaker .

Indirect speech : - Indirect speech is the way in which you convey what someone said to another person, not necessarily using the exact words of the speaker.

Changes in Personal Pronoun:

When reporting a speech the pronoun should be changed according to the relationship of the speaker to the person whose speech is being reported. If the spoken words contain a pronoun or determiner in the first or second person, this often changes to a different person in indirect speech: The third person remains the same.

• "I should have asked my friend to lend me his notebook", admitted Rohan.(Direct Speech)
• Rohan admitted that he should have asked his friend to lend him his notebook.  (Indirect Speech)

In the question : -

We said , " We are decorating our house " .

The Indirect speech of the above sentence is :

We said that we were decorating our house .

While converting into indirect speech , firstly , said remains same  , then the inverted commas are converted into that , then the first person pronoun of reported speech is not changed  and then the simple present tense is converted into simple past means are is converted into were and then the objective part our house  .

Thus , the Correct Option is B , which is We said that we were decorating our house .

Direct speech : - Direct speech is used to report or rather repeat the words spoken by the speaker or writer in the way it is told by the speaker .

Indirect speech : - Indirect speech is the way in which you convey what someone said to another person, not necessarily using the exact words of the speaker.

Changes in Personal Pronoun:

When reporting a speech the pronoun should be changed according to the relationship of the speaker to the person whose speech is being reported. If the spoken words contain a pronoun or determiner in the first or second person, this often changes to a different person in indirect speech: The third person remains the same.

• "I should have asked my friend to lend me his notebook", admitted Rohan.(Direct Speech)
• Rohan admitted that he should have asked his friend to lend him his notebook.  (Indirect Speech)

In the question : -

1. He said to me , " Your shirt is nice " .

The Indirect speech of the above sentence is :

He said that me that my shirt was nice .

While converting into indirect speech , firstly , said remains same , then the inverted commas are converted into that , then  your is converted into my according to first pronoun and then simple present is converted into simple past means is converted into was and then the objective part nice .

2. She said , " He finished his task " .

The Indirect speech of the above sentence is :

She said that he had finished his task .

While converting into indirect speech , firstly , said remains same , then the inverted commas are converted into that , then the third person pronoun remains same and then simple past is converted into present perfect means finished converted into had finished and then the objective part his task .

Thus , the Correct Option is D , which is 1. He said that me that my shirt was nice . 2. She said that he had finished his task .

Direct speech : - Direct speech is used to report or rather repeat the words spoken by the speaker or writer in the way it is told by the speaker .

Indirect speech : - Indirect speech is the way in which you convey what someone said to another person, not necessarily using the exact words of the speaker.

Changes in Personal Pronoun:

When reporting a speech the pronoun should be changed according to the relationship of the speaker to the person whose speech is being reported. If the spoken words contain a pronoun or determiner in the first or second person, this often changes to a different person in indirect speech: The third person remains the same.

• "I should have asked my friend to lend me his notebook", admitted Rohan.(Direct Speech)
• Rohan admitted that he should have asked his friend to lend him his notebook.  (Indirect Speech)

In the question : -

1. She said , "He work in a factory " .

The Indirect speech of the above sentence is :

She said that he worked in the factory .

While converting into indirect speech , firstly , said remains same , then the inverted commas are converted into that , then the third person pronouns remains same and then simple present changes into past means work converts into worked and then the objective part in a factory .

2. He said , " She made tea for them " .

The Indirect speech of the above sentence is :

He said that she had made tea for them .

While converting into indirect speech , firstly , said remains same , then the inverted commas are converted into that , then the third person pronouns remains same and then simple past changes into past perfect means made converts into had made and then the objective part tea for them .

Thus , the Correct Option is C , which is  1. She said that he worked in the factory . 2. He said that she had made tea for them .