Correct Answer: He said, “My new slippers are very comfortable.”

Solution : The correct choice is the second option.

Direct speech is the exact words spoken by a person, enclosed within quotation marks.

The steps of conversion are as follows:

• Identify Reporting Verb: Recognise the verb indicating speech (e.g., "said").
• Retain Reporting Clause : Keep the subject and object of the reporting clause intact (e.g., "he").
• Adjust Pronouns: Change pronouns if necessary to match the speaker in the reported speech (e.g., "his" to "my").
• Adjust Verb Tense : Change the tense of the verb in reported speech as needed (e.g., "were" to "are").
• Enclose in quotation marks : Place the reported speech within quotation marks.

Therefore, the accurate direct form is: "He said, 'My new slippers are very comfortable'".