The correct answer is option 2 i.e. He told the principal that he had made a mistake.

The inverted comma is removed and 'that' is added after 'principal'.

'Said to' changes into 'told' as there is an object of the reporting verb.

'I' changes into 'he' as the first person changes according to the subject of the reporting verb.

'Have made' changes into 'had made' as the reporting verb is in the past.

Hence, the chosen option is correct.

The correct answer is option 3 i.e. The friend told me that he was not going to talk to me.

The inverted comma is removed and 'that' is added after 'me'.

'Said to' changes into 'told' as there is an object of the reporting verb.

'I' changes into 'he' as the first person changes according to the subject of the reporting verb.

'You' changes into 'me' as the second person changes according to the object of the reporting verb.

'Am' changes into 'was' as the reporting verb is in the past.

Hence, the chosen option is correct.

The correct answer is option 1 i.e. They said that that was the stadium where they had won the match.

As the reporting verb is in the past tense there will be a change in the tense of the reported speech.

There will be no change in the reporting verb as there is no object after it.

"This" will be changed into "that".

"Is" (simple present) will be changed into "was" (simple past).

The inverted comma will be changed into "that".

As all the rules are followed by the chosen option it will be correct.

The correct answer is option 2 i.e. The Minister said that Kerela had the highest literacy rate in India.

Many of us will confuse this question as a universal truth but this statement is not a universal truth as it may change after some years or decades.

Universal truths are those that never change for example Sun rises in the East.

'Said' changes to 'told'.

The conjunction ‘that’ is used to connect reporting and reported speech.

The sentence is in the present indefinite tense and changes to past indefinite.

'Has' changes to 'had'.

On making the above-mentioned changes, the given sentence can be converted to its respective indirect speech.

The correct answer is option 1 i.e. Pawan asked him who he was.

The given sentence is a wh-interrogative sentence.

The reporting verb "asked" is used without "that."

The question word ("Who") remains unchanged.

The simple present tense changes to simple past tense i.e. "are" becomes "was".

Word order changes to that of a statement (subject before verb), so "who are you" becomes "who he was".

On making the above-mentioned changes, the given sentence can be converted to its respective indirect speech.

The correct answer is option 3 i.e. He said that he had started the job that day.

As the reporting verb is in the past tense there will be a change in the tense of the reported speech.

There will be no change in the reporting verb as there is no object after it.

"Simple past tense" (started) will be changed into "Past perfect tense" (had started).

The inverted comma will be changed into "that".

"Today" will be changed into "that day".

As all the rules are followed by the chosen option it will be correct.

The correct answer is option 3 i.e. Mukesh told his friend that he had been to Shimla the previous year.

The given sentence is in present perfect tense and it changes to past perfect tense.

Changes:

'Said to' changes to 'told'.

Mukesh told his friend that he had been to Shimla the previous year. 

'Have been' changes to 'had been'.

'Last year' changes to 'the previous year'.

As all the rules are followed by the chosen option it will be correct.

The correct answer is option 1 i.e. The teacher told the children that the Sun always sets in the west.

There will be no change in the tense of the reported speech as it is in the universal truth category. 

The reported verb "said" will be changed into "told".

Inverted comma will be changed into "that".

As all the rules are followed by the chosen option it will be correct.

The correct answer is option 4 i.e. He said that he was coming the next day.

There will be no change in the reporting verb as there is no object after it.

As the reporting verb is in the past tense there will be a change in the tense of the reported speech.

"Am coming" (present continuous)will be changed into "was coming" (past continuous).

The inverted comma will be changed into "that".

As all the rules are followed by the chosen option it will be correct.

The correct answer is option 1 i.e. She said that she had been in that school since 1998.

For changing direct/indirect speech into indirect/direct speech certain grammatical rules are followed:- 

Tense of the reported speech will be changed into Past perfect tense.

"This" will be changed into "that".

"That" will be used instead of "inverted comma".

As the chosen option follows all the given rules it will be correct.