In this question on reported speech, choose the correct Indirect Speech form of the statement: "He said, 'I saw the movie yesterday.'"

Introduction / Context:
This item tests your ability to convert a simple past statement with a time expression from Direct Speech into Indirect Speech. The original sentence is: He said, "I saw the movie yesterday." You must choose the reported form that correctly shows tense backshift from simple past to past perfect and appropriately changes the time word yesterday.

Given Data / Assumptions:

- Direct speech: I saw the movie yesterday. - Reporting clause: He said. - Reporting verb: said, in the past tense. - Time expression: yesterday, meaning one day before the moment of speaking.

Concept / Approach:
When the reporting verb is in the past tense, many grammar guides recommend changing simple past in the reported clause to past perfect in indirect speech, especially when a clear reference point is needed. So saw becomes had seen. The pronoun I refers to he, so it changes to he in the reported clause. Time expressions like yesterday generally become the day before in indirect speech. The conjunction that often introduces the reported clause, although it may be omitted in everyday conversation.

Step-by-Step Solution:

Verification / Alternative check:
To verify the transformation, convert the indirect sentence back to direct speech. From He said that he had seen the movie the day before, you change he had seen to I saw and the day before to yesterday, then add quotation marks. This gives: He said, "I saw the movie yesterday." which matches the original sentence and confirms the transformation is correct.

Why Other Options Are Wrong:
Option A keeps the auxiliary has instead of using had and uses seen instead of saw in the right context, producing an incorrect present perfect tense. Option B changes the subject to I in the reported clause, which is wrong because the speaker is he, not the listener. Option D mixes I and have seen, which again misidentifies the speaker and misuses the tense. Option E, He said that he saw the movie the previous day, is close in meaning and is acceptable in some contexts, but exam questions usually expect the clear past perfect form had seen plus the day before, making option C the best choice.

Common Pitfalls:
Learners often forget to backshift simple past to past perfect in formal reported speech and may keep yesterday unchanged. This can lead to confusion about the sequence of events. Another error is mismanaging pronouns, especially in cases where the speaker and listener roles are not carefully identified. Always start by asking who is speaking, what tense the action uses and when the action occurred relative to the reporting moment, then apply the correct tense and time expression changes.

Final Answer:
The correct indirect speech sentence is He said that he had seen the movie the day before.