Correct Answer: My teacher says, “Never trust your relatives.”

Solution : The correct choice is the first option.

When reporting what someone else said, we often use the reporting verb in the present tense if the original statement is still relevant or true in the present.

The steps of conversion are as follows:

• There would be no change in the reporting verb, as it is in the present tense.
• The third-person pronoun "one's" is changed to the second-person pronoun "your".
• The connector "to" is removed.
• The words of the speaker are enclosed in the inverted commas.

Therefore, the direct form would be: My teacher says, "Never trust your relatives."