Correct option is B
"The teacher said that William Shakespeare was born in Stratford-upon-Avon." correctly reports the statement in indirect speech without changing the fact stated.
Direct speech- Direct speech, also known as quoted speech or direct quotation, is a way of reporting someone's exact words.
Indirect speech- Indirect speech, also known as reported speech or indirect quotation, is a way of reporting someone's words or thoughts indirectly, without using their exact words.
Rules for converting direct speech to indirect speech-
· In indirect speech, tenses do not change if the words used within the quotes (‘’) talk of a habitual action or universal truth.
· Reporting verbs such as ‘said/ said to’ changes to said, told.
· Comma inverted comma will be replaced with conjunction “That”.