Correct Answer: Bill said that he had missed his train and that he would be late for work.

Solution : The correct choice is the third option.

Explanation : When transforming direct speech into indirect speech, it is essential to shift the verb tenses back one step in time.

• Here, "have missed" becomes "had missed," and "will" becomes "would."
• The first-person pronoun "I" in the original statement is changed to the third-person pronoun "he" in the reported speech.
• The connector "that" is used to introduce the reporting phrase.
• This adjustment maintains grammatical accuracy and reflects the temporal and pronoun changes required in indirect speech.

So, the correct sentence would be: "Bill said that he had missed his train and that he would be late for work."