Choose the correct option for the given sentence to transform it into…

The correct answer is Option (3) → She tells me that she has no interest in serious fiction.

Indirect speech with a present-tense reporting verb:

Change	Direct	Indirect	Why
Tense kept	have	has	No tense change, because the reporting verb is present. “Have” becomes “has” only to agree with the new subject.
Pronoun change	I	she	“I” refers to the speaker, so it becomes “she”.
Joining word	“ ” (inverted commas)	that	The inverted commas go and “that” introduces the reported clause.
Full sentence	She tells me, “I have no interest in serious fiction”.	She tells me that she has no interest in serious fiction.

"Tells" is in the present tense, so it stays "tells".

Example: He says, “I am tired.” → He says that he is tired.

Why the Other Options are Incorrect?

Option 1: She tells me that I had no interest in serious fiction — Incorrect.

• "I" now points to the listener instead of the speaker. It should be "she".
• "had" is a backshift that a present reporting verb does not allow.

Option 2: She tells me that she has not interest in serious fiction — Incorrect. "Has not interest" is ungrammatical. The noun "interest" needs "no" (or "has not any interest").

Option 4: She tells me that I have no interest in serious fiction — Incorrect. The pronoun is not changed: "I" must become "she", or the sentence says that the listener has no interest.