Correct Answer: My neighbour greeted me and asked how I was.

Solution : The correct choice is the third option.

The steps of conversion are as follows:

• The reporting verb "said" is changed to "greeted" because the sentence is an optative sentence.
• The present tense "are" is changed to the past tense "was".
• The second-person pronoun "you" is changed to the first-person pronoun "I".
• "And" conjunction will be added to make the sentence meaningful.
• "Asked" will be added, because the given sentence is also an interrogative sentence.

So, the correct sentence would be: "My neighbour greeted me and asked how I was."