Correct Answer: She said, "I am going to the theatre now."

Solution : The first option is the correct choice.

The given sentence is an indirect speech, and we need to convert it into a direct speech.
We follow these rules in indirect and direct speech:

• The reporting verb "said" remains the same in the indirect speech part.
• The pronoun "she" (third-person pronoun) changes to 'l' (first-person pronoun) in the direct speech.
• If the indirect speech is written in the past continuous tense, then we have to change it to the present continuous in the direct speech.
• The verb "was going" in the indirect speech is changed to "am going" in the direct speech.
• "Then" changes to "now" in the direct speech.

Therefore, the correct answer is: She said, "I am going to the theatre now ."