Correct option is C
He said that he would go and return quickly.
Explanation: This option correctly reflects the transformation of direct speech into indirect speech, maintaining the future intent expressed by "will" in the original statement and converting it to "would" in the reported form. This shift is typical when reporting statements about the future.
Grammatical rule used: When converting direct speech into indirect speech, modal verbs such as "will" often change to "would" to reflect a shift in immediacy and perspective. Example: He said that he would finish the project by Monday.