He said, “What a beautiful day it is.” (Correct indirect speech)

The correct indirect speech for the exclamatory sentence "He said, "What a beautiful day it is."" is "He exclaimed with wonder that it was a very beautiful day." When converting exclamatory sentences to indirect speech, the reporting verb changes to "exclaimed" (often with an adverb like "wonder" or "joy"). The exclamation is transformed into a declarative statement, and the tense shifts from present ("is") to past ("was"). "What a beautiful day" becomes "a very beautiful day."

• Option A uses "sorrow," which is the wrong emotion.
• Option C and D incorrectly retain the present tense "is" instead of shifting to the past tense "was."