Correct Answer: She said, "Let us distribute food among the needy."

Solution : The third option is the correct choice.

Narration Conversion:

• The verb suggested is changed to said in the direct form.
• She remains the same, as the subject pronoun is retained.
• The phrase that we should distribute is changed to the imperative form let us distribute.
• The words of the speaker are enclosed in quotation marks.

Therefore, the correct sentence is: She said, "Let us distribute food among the needy."