Select the option that expresses the given sentence in direct speech.…

The correct answer is Option (2) → Kabir said, “Hurrah! My team has won the district kabaddi final.”

Changing an exclamation from indirect back into direct speech:

Change	Indirect	Direct	Why
Reporting verb	exclaimed with joy	said, “Hurrah! ...”	“Exclaimed with joy” tells us Kabir shouted in happiness. In his own words this joy is shown by “Hurrah!”, and “exclaimed” goes back to “said”.
Joining word	that	“ ” (quotation marks)	“That” is dropped. The spoken words go inside quotation marks.
Pronoun change	his	My	Kabir is the speaker. In his own words “his team” becomes “my team”.
Tense change	had won	has won	“Had won” is in the past perfect only because of the past “exclaimed”. The past perfect is formed with had + past participle (V3). Going back, it returns to the present perfect “has won”. The present perfect is formed with has / have + V3.
Full sentence	Kabir exclaimed with joy that his team had won the district kabaddi final.	Kabir said, “Hurrah! My team has won the district kabaddi final.”

“Exclaimed with sorrow” goes back to “Alas!” in the same way. Example: Neel exclaimed with sorrow that he had lost his wallet. → “Alas, I have lost my wallet,” Neel said.

Why the Other Options are Incorrect?

Option 1: Kabir said, “Hurrah! His team has won the district kabaddi final.” — Incorrect. The pronoun “his” is not changed. In his own words Kabir says “my team”.

Option 3: Kabir said, “Hurrah! My team had won the district kabaddi final.” — Incorrect. “Had won” is kept inside the quotation marks. It came only from the past “exclaimed”, so it goes back to “has won”.

Option 4: Kabir said, “Hurrah! That my team has won the district kabaddi final.” — Incorrect. “That” is kept inside the quotation marks. Spoken words do not begin with this joining word.