Correct Answer: She said to me, “I know you want to help me but I can manage on my own.”

Solution : The correct choice is the third option.

Narration Conversion:

• The reporting verb told is changed to said in the direct form.
• The third-person pronoun she in the reported speech becomes I in the direct speech when quoting the speaker directly.
• The simple past tense (knew) is changed to the simple present tense (know) in direct speech.
• The words of the speaker are enclosed in quotation marks.

Therefore, the correct sentence in the direct form is: She said to me, “I know you want to help me, but I can manage on my own.”