Question

She said, "We were busy with this project." (Narration)​

Answer 1

.She told that they were busy with this project.

Answer 2

Answer:

She said that they had been busy with that project.

Explanation:

Question:

She said,"We were busy with this project".

(Narration)

Answer:

She said that they had been busy with that project.

*The given question is in,direct speech,declarative sentence.

*So we have to follow the declarative sentence rules.

*In the reported speech,comma and quotation are removed and the declarative connective linker "that" is included.

*Pronoun "we" is changed into "they"

*Past tense verb "were" is changed into past perfect tense verb "had been".

*The adverb "this" is changed into "that".

*So the answer is,

She said that they had been busy with that project.