Select the option that expresses the given sentence in reported speech.

She said, “I know where he lives.”

She said that she knew where he lived.

The most appropriate option to express the given sentence in reported speech is:

She said that she knew where he lived.

The other options are incorrect:

• She said that she knew where he living. - This is incorrect because the present participle "living" should be the past participle "lived".
• She said I know where he lived. - This is incorrect because the pronoun "I" should be "she".
• She said she had knowledge of where he lived. - This is incorrect because the phrase "had knowledge of" is more formal than the verb "knew".