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The given sentence is in Direct Speech because it quotes actual words. Therefore, it must be changed into Indirect Speech.
Also, the first part of the sentence is interrogative.
To convert interrogative sentences into indirect speech, follow the following rules along with the above-mentioned rules:
• The reporting verb ‘said’ is changed to ‘asked’.
• If the reporting speech is having the reporting verb (can) at it its start, then if' is used in place of that.
• The present tense (can) is changed to the past tense (could).
• The pronoun ‘me’ is changed to ‘her’.
The second part of the sentence contains 'reply' to the question asked by Kanika. We will use the conjunction ‘and’ to connect the two parts of the question. Also, the verb ‘could’ will be used to maintain parallelism.
Therefore, the sentence in Indirect Speech will be :- Kanika asked if I could help her in lifting that box and I replied that I could not.
Hence, option C is the correct answer.