Correct option is B
Direct speech: Direct speech is a form of quoting someone's exact words or statements as they were spoken, usually enclosed within quotation marks.
• Indirect speech: Indirect speech is a way of conveying someone's words or statements without using their exact words, typically by rephrasing or reporting the original statement using appropriate verb tenses and pronouns.
• The correct indirect form of the sentence is "Priya told me that she could stay in that night."
• In the indirect form, the tense changes from present to past (can to could) and "tonight" changes to "that night" to reflect the change in perspective.