Correct Answer: Mahesh asked Priya how she would pay off her debts.

Solution : The correct choice is the third option.

The steps of conversion are as follows:

• The reporting verb "said" is changed to "asked" because the given sentence is an interrogative sentence.
• "How" will be used as a conjunction because we know that in an interrogative sentence with a question word, that word itself becomes the conjunction.
• "Will" is changed to its past form, "would".
• The second-person pronouns "you" and "your" are changed to the third-person pronouns "she" and "her", respectively.

So, the correct sentence would be: "Mahesh asked Priya how she would pay off her debts."