Read the following direct speech sentence and choose the option that correctly converts it into indirect (reported) speech: The agent said, "This is the best house on this street."

Introduction / Context:
This question tests the learner's understanding of how to change a sentence from direct speech to indirect (reported) speech. In particular, it focuses on the correct backshifting of the verb "is" and the change of demonstratives "this" and "this street" to more distant forms that fit reported speech. Such questions are common in English grammar sections of competitive examinations and help assess control over tense, pronouns, and deictic words (words that depend on context like this, that, here, and there).

Given Data / Assumptions:

• Direct speech sentence: The agent said, "This is the best house on this street."
• The reporting verb "said" is in the simple past tense.
• The sentence inside quotes is a present simple statement expressing a general opinion or assessment.
• We must convert the sentence into indirect speech without changing the fundamental meaning.

Concept / Approach:
When we transform a statement from direct to indirect speech, we usually remove the quotation marks, use a conjunction such as "that," and adjust the tense of the verb in the reported clause if the reporting verb is in the past. Present simple generally changes to past simple. In addition, demonstrative words like "this" and expressions of place such as "this street" often change to "that" and "that street" to match the shift in perspective. The core meaning that the house is considered the best on that specific street must remain intact.

Step-by-Step Solution:

Step 1: Identify the reporting clause: "The agent said". This will stay mostly the same in indirect speech. Step 2: Replace the comma and quotation marks with the conjunction "that" to introduce the reported clause. Step 3: Change the verb "is" (present simple) in the reported clause to "was" (past simple) because the reporting verb "said" is in the past. Step 4: Change "this" and "this street" to "that" and "that street" to reflect the shift from direct to indirect context, resulting in: "The agent said that that was the best house on that street."

Verification / Alternative check:
We can verify the correctness by checking whether the reported sentence is grammatically complete, maintains the original message, and follows standard rules. "The agent said that that was the best house on that street" correctly uses "that" as a conjunction, backshifts "is" to "was," and appropriately changes "this" and "this street" to "that" and "that street." The repetition "that that" is acceptable because the first "that" is the conjunction and the second "that" is the demonstrative pronoun. The sentence sounds natural in formal grammar and is a standard textbook answer for this transformation.

Why Other Options Are Wrong:

Option A: "The agent said that this was the best house on this street." keeps "this" and "this street," which are usually changed to "that" and "that street" in indirect speech when the speaker is removed from the original location or moment. Option C: "The agent said that it was the best house on this street." correctly backshifts the verb but still uses "this street," which should normally become "that street" in reported speech. Option D: "The agent said that that is the best house on that street." does not backshift "is" to "was," which is required because the reporting verb "said" is in the past. Option E: "The agent said that it is the best house on that street." again fails to backshift the verb "is" to "was," making the tense sequence inconsistent.

Common Pitfalls:
Learners often overlook the need to backshift the verb when the reporting verb is in the past, leaving "is" unchanged. Another common error is forgetting to change demonstratives like "this" to "that" and not adjusting expressions of place or time appropriately. Some students also feel that "that that" sounds wrong and incorrectly avoid it, but grammatically it is acceptable and often necessary in reported speech. Remember that clarity and rule-consistency matter more than avoiding repetition.

Final Answer:
The correct indirect speech form is The agent said that that was the best house on that street.