Direct : Sujata said, "I am playing a percussion instrument.”
Indirect : Sujata said that ____________ playing a percussion instrument.

Correct option is D

The correct indirect speech form is (d) she was.

Explanation: In changing from direct to indirect speech:

1. The reporting verb "said" remains in the past tense, requiring a backshift in the tense of the reported speech.
2. "I am playing" in direct speech changes to "she was playing" in indirect speech because the present continuous tense changes to the past continuous tense.
3. The pronoun "I" changes to "she" to align with the subject of the reporting clause (Sujata).

Thus, the indirect sentence becomes: Sujata said that she was playing a percussion instrument.

Grammatical rule used: In indirect speech, the tense of the verb is usually shifted one step back in time when the reporting verb is in the past tense.
Explanation of the rule in Hindi: प्रत्यक्ष से परोक्ष वाक्य बदलते समय, यदि रिपोर्टिंग क्रिया भूतकाल में हो, तो मुख्य वाक्य की क्रिया का काल एक कदम पीछे चला जाता है।

Example:

• Direct: He said, "I am reading a book."
• Indirect: He said that he was reading a book.

Meanings of other options:
· I am: (मैं हूं) Present tense, not suitable in indirect speech with past reporting verb.
· I was: (मैं था) Incorrect as the pronoun "I" should change to "she."
· she is: (वह है) Present tense, incorrect when the reporting verb is in past tense.