In the following question, a sentence is given in direct speech. Select the option that best expresses the same sentence in indirect (reported) speech. The family said, "We were watching TV when we heard the news."

Introduction / Context:
This problem focuses on changing a complex sentence in direct speech with a past continuous action and a simple past action into indirect speech. The situation describes an action in progress that was interrupted by an event. When we report such statements, we must shift tenses correctly while keeping the time relationship between the two actions clear.

Given Data / Assumptions:

• Reporting verb: "said" in simple past.
• Direct sentence: "We were watching TV when we heard the news."
• Subject inside the quote: "we" refers to the family.
• Verbs: "were watching" (past continuous) and "heard" (simple past).
• Conjunction "when" links an ongoing action with an interrupting event.

Concept / Approach:
In reported speech with a past reporting verb, past continuous usually becomes past perfect continuous, and simple past generally changes to past perfect. The pronoun "we" becomes "they" because the family is being referred to by an outside narrator. The conjunction "when" remains unchanged because it still correctly shows one action happening during another. The structure of the sentence should remain similar, but quotation marks and the comma should disappear in the indirect version.

Step-by-Step Solution:
Step 1: Start with the reporting clause "The family said" and add "that" to begin the reported clause. Step 2: Change "we" to "they" to fit the new point of view in reporting. Step 3: Convert "were watching TV" to "had been watching TV", shifting past continuous to past perfect continuous. Step 4: Change "heard the news" to "had heard the news", shifting simple past to past perfect. Step 5: Keep the conjunction "when" to preserve the relationship between the ongoing watching and the moment the news was received. Step 6: Combine everything into the final sentence: "The family said that they had been watching TV when they had heard the news."

Verification / Alternative check:
To verify, imagine the time line: the family was already in the middle of watching television when the news was heard. Using past perfect continuous and past perfect in reported speech indicates that both actions happened before the moment of reporting. The meaning matches the original sentence without any loss of information or change in time relationship. The indirect version is grammatically sound and clear.

Why Other Options Are Wrong:
Option B includes "have had heard" which is not a standard form and mixes present perfect elements with past context. Option C uses "have been watching" which is present perfect continuous, not suitable after a past reporting verb. Option D repeats this error and also uses "have had heard", so it is grammatically incorrect and inconsistent with the rules of reported speech.

Common Pitfalls:
Students sometimes hesitate between using past perfect and keeping a simple past verb unchanged. While some grammarians accept simple past after "when" in reported speech, exam patterns for competitive tests usually expect backshifting when the reporting verb is in the past. Another common error is to forget to change pronouns like "we" to "they", which may confuse the reader about who is meant. A careful check of each verb and pronoun after writing the first draft of the reported sentence is a good habit.

Final Answer:
The correct reported sentence is The family said that they had been watching TV when they had heard the news.