The two ways of relating what a person has said are 1)direct and 2)indirect (reported).
In the direct speech, the exact words of the original speaker are repeated.
In the indirect speech (reported speech), the exact meaning of what the speaker told is expressed but not necessarily in the speaker’s exact words.
Option B is correct as the direct speech is in the present perfect tense and uses the appropriate introductory verb (cried)
Options A, C, and D are wrong as 'told' cannot be used, the sentence is not transformed and 'had' cannot be used two times respectively.
The correct answer is A)The watchman cried that the thieves had broken into the house and stolen all the property.