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

“Alas, I have broken my brother’s watch!” said he.

He exclaimed with sorrow that he had broken his brother’s watch.

The correct option is: He exclaimed with sorrow that he had broken his brother's watch.

• "He exclaimed with sorrow I have broken my brother’s watch." is incorrect because the verb tense is incorrect. The indirect speech sentence should be in the past perfect tense, not the present perfect tense.
• "He exclaimed with sorrow that he may have broken his brother’s watch." is incorrect because the modal verb "may" is not necessary.
• "He exclaimed with sorrow that he has broken his brother’s watch." is incorrect because the verb tense is incorrect. The indirect speech sentence should be in the past perfect tense, not the present tense.