The correct option is D said / were watching
The second sentence indicates an action that occured and ended in the past, hence, simple tense of the verb should be used, that is , "said".The first sentence indicates an action that continued in the past till a definite time, hence, past continuous tense (was/were+ verb+ing) should be used, that is, "were watching". Hence, Option B is correct. The rest of the options do not adhere to this rule, hence incorrect.