In this direct and indirect speech question, select the option that correctly reports the statement: The leader said to his gang members, "Now I will tell you my plan."

Introduction / Context:
This question examines how to report a statement about a near future action with a time reference now. The original sentence comes from a leader who is about to reveal a plan to his gang members. When converting the sentence into indirect speech, you must change the time reference appropriately and backshift the future will. This kind of question helps test your understanding of time words and modals in reported speech.

Given Data / Assumptions:

• Direct sentence: The leader said to his gang members, "Now I will tell you my plan."
• Reporting verb: said to, with object his gang members.
• The time adverb used is now.
• The verb phrase is future: will tell.
• The pronoun you refers to the gang members and becomes them in indirect speech.

Concept / Approach:
In reported speech, when the reporting verb is past, will generally changes to would. The word now often changes to then to fit the shift in time perspective. The pronoun I becomes he, referring to the leader, and you becomes them, referring to the gang members. We normally change said to into told when an object is specified. The adverb then can be placed either before or after the verb would tell, but many exam patterns prefer he would then tell them his plan for clarity. Thus, a complete reported version is The leader told his gang members that he would then tell them his plan.

Step-by-Step Solution:
Step 1: Change said to his gang members into told his gang members. Step 2: Begin the reported clause with that for formal structure. Step 3: Replace I with he to refer to the leader in the third person. Step 4: Backshift will tell to would tell to match the past reporting verb. Step 5: Change now to then and convert you into them, placing then in a natural position in the clause.

Verification / Alternative check:
The final sentence is: The leader told his gang members that he would then tell them his plan. It preserves the original meaning, marks the time shift from now to then, and expresses the future in the past through would tell. The pronouns are correctly changed, and the sentence reads smoothly. This is a standard and acceptable answer for an exam question testing this pattern.

Why Other Options Are Wrong:
Option A places then at the start of the clause in a slightly unusual position and also leaves some ambiguity in word order.
Option C puts then at the end, which is possible but less preferred in many exam style answers and slightly less emphatic.
Option D is incorrect because would tell has been replaced by told, which changes the meaning to a completed past action and ignores the original future sense.
Option E is incomplete because it omits any equivalent for now, failing to show the shift in time reference.

Common Pitfalls:
Students often forget to change now into then in reported speech when the time of speaking has clearly shifted. Another common error is leaving will unchanged instead of converting it to would. Pronouns can also cause confusion, especially with you, which must be interpreted from context as them here. To avoid mistakes, always identify time words and modals in the original sentence and check how they should change when reporting from a later time point.

Final Answer:
The leader told his gang members that he would then tell them his plan.