Correct Answer: She said that she had finished her assignment two hours before.

Solution : The second option is the correct choice.

Narration Conversion:

• The reporting said is used to report the words.
• 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 .
• Two hours ago in the direct speech is modified to two hours before in the indirect speech to accurately convey the time frame.

Therefore, the correct sentence is: She said that she had finished her assignment two hours before.