Correct Answer: She told me that she had been thinking of going out for dinner but changed her mind later on.

Solution : The fourth option is the correct choice.

In transforming direct speech into indirect speech, we maintain the original meaning and context while adjusting the structure to report what was said, usually in a past context.

For the transformation to indirect speech:

• The reporting verb ( said) changes to ( told) in indirect speech.
• The reported speech ( I was thinking of going out for dinner but had changed my mind later on) is transformed into ( that she had been thinking of going out for dinner but had changed her mind later on ).
• Pronouns ( I changed to she , my changed to her ) and verb tenses were adjusted for the sequence of tenses in indirect speech.

Therefore, the indirect statement is: She told me that she had been thinking of going out for dinner but changed her mind later on.