She said, "We will run outside to play."
The above sentence is in direct speech.
The two ways of relating what a person has said are 1)direct and 2)indirect (reported speech).In direct speech, the original speaker's exact words are repeated. In indirect/reported speech, the exact meaning is expressed but not necessarily using the original speaker's exact words. Pronouns and possessive adjectives usually change from first or second person to the third person except when the speaker is reporting his own words. Sometimes a noun can be inserted to avoid doubt.
When we turn direct questions and exclamations into indirect speech, they are converted to affirmative statement .( ? and ! is not used).
Option A is correct as the given sentence is in the direct speech( it is reported using inverted commas and the original words of the speaker are repeated as it is)
The correct answer is A)True
The other option is wrong as the given sentence is not in indirect speech.