Correct Answer: Sana said that she was going to pick up the children then.

Solution : The correct option is the first option.

Narration Conversion:

• The reporting verb said remains unchanged.
• That is used to connect the main clause to the reported clause.
• The first-person pronoun I is changed to the third-person pronoun she .
• The present continuous tense is changed to the past continuous tense. Thus, am going is changed to was going .

Therefore, the correct indirect form is: Sana said that she was going to pick up the children.