Correct Answer: Father said to the children, "There is some good news for you today."

Solution : The correct option is the first option.

When transforming reported speech into direct speech, it's crucial to consider changes in pronouns and verb tenses to accurately reflect the original statement.

The steps of conversion are as follows:

• The reporting verb "told" is changed to "said".
• The past tense "was" is changed to the present tense "is".
• The third-person pronoun "them" is changed to the second-person pronoun "you".
• The words of the speaker are enclosed in the inverted commas.
• The time expression "that day" is changed to "today".

So, the correct sentence would be: Father said to the children, "There is some good news for you today."