Correct option is A
The correct substitution of the quoted words is "my pen was".
Explanation: "Was my pen" is an incorrect inversion of the subject and auxiliary verb for a declarative sentence. The correct form "my pen was" adheres to the standard English syntax for stating the location or state of an object in past tense.
Grammatical rule used: In indirect questions and statements, the standard word order (subject-verb) is used, not the question form (verb-subject).
Example: He asked me where my keys were.