Correct option is A
We are asked to change the sentence from Direct Speech to Indirect Speech and you want it to be treated as a general statement (general truth / continuing belief).
Direct Speech:
- The priest said, “We are all sinners.”
Indirect Speech (General Statement):
- The priest said that we are all sinners. (Option A)
Why Option A is correct (General Statement Rule)
In reported speech, when the quoted statement expresses:
- a general truth,
- a universal belief,
- a permanent fact, or
- something that is still true at the time of reporting,
then the tense does not change, even if the reporting verb is in the past.
Here, “We are all sinners” is not a temporary action happening only at that moment. It is a general religious/moral statement (a continuing belief). So are can remain are.
Grammar rule used
- General truth / universal statement: No backshift of tense
Reporting verb (past) + that + same tense (if the statement is still true)
Example (similar pattern):
- Direct: The teacher said, “The Earth revolves around the Sun.”
- Indirect: The teacher said that the Earth revolves around the Sun.
(“revolves” remains present because it is a fact.)