<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}-->
‘My father said that his friend had given him a gift’ is the correct answer because when a sentence is reported the pronoun and the tense changes. Here, ‘my’ and ‘me’ changes to ‘his’ and ‘him’ respectively, and ‘has given’ which is in present perfect tense changes to ‘had given’ in the past perfect tense.