Choose the correct transformation of the given sentence in Indirect S…

The correct answer is Option (4) → The receptionist told us that we could wait there but the doctor might come late.

Changing “can” and “may” into indirect speech:

Change	Direct	Indirect	Why
Reporting verb	said to us	told us	The listeners are named as “us”. So “said to” becomes “told”.
Joining word	“ ” (quotation marks)	that	A statement is joined with “that”.
Pronoun change	You	we	The receptionist spoke to us. In our own report the receptionist’s “you” becomes “we”.
Tense change	can, may	could, might	After the past “said”, “can” becomes “could” (could + base form (V1)) and “may” becomes “might” (might + base form (V1)).
Place word	here	there	The words are reported later, away from the clinic. So “here” becomes “there”.
Full sentence	The receptionist said to us, “You can wait here, but the doctor may come late.”	The receptionist told us that we could wait there but the doctor might come late.

“Will” becomes “would” in the same way. Example: Nikhil said, “The bus will be late.” → Nikhil said that the bus would be late.

Why the Other Options are Incorrect?

Option 1: The receptionist told us that we could wait here but the doctor might come late. — Incorrect. The place word “here” is not changed. In the report it becomes “there”.

Option 2: The receptionist told us that we could wait there but the doctor may come late. — Incorrect. “May” is left unchanged. After the past “said” it must become “might”.

Option 3: The receptionist told us that you could wait there but the doctor might come late. — Incorrect. “You” is left unchanged. We were spoken to, so in our report it becomes “we”.