Question

My friend says , i will fail"
Narration change

Answer 1

Direct : My friend says, "I will fail"

Indirect : My friend says that he will fail.

Answer 2

$\huge \mathfrak {Narration \:Change :-}$

Direct speech :- My friend says , "I will fail"

Indirect speech :- My friend says that he/she will fail.

$\underline {\sf{Rule\:applied}}$

The reporting verb said is in simple present tense. So the reported verb will fail won't be changed