Select the correct indirect form of the given sentence.

He says, "I am going to the market now."

He says that he is going to the market now.

The correct indirect form of the given sentence is:

He says that he is going to the market now.

This is because the reporting verb "says" is in the present tense, so the reported clause also remains in the present tense. The pronoun "he" is also retained in the third person, even though it is the subject of the reported clause.

The other options are incorrect for the following reasons:

• He said that he is going to the market now. This sentence is correct in the sense that it is in the indirect form, but it is not the most specific way to report the speaker's words. It is better to use the present tense to indicate that the action of going to the market is happening now.
• He saying that he is going to the market now. This sentence is incorrect because the verb "saying" is in the progressive tense, but the reported clause is a simple statement.
• He says that he was going to the market then. This sentence is incorrect because the reported clause is in the past tense, but the reporting verb is in the present tense.