My father said, "We have been living here since the day this house was
Right Answer is: B
In the given sentence the inverted commas (“ “) used in Direct Narration will be removed in Indirect Narration and “that” conjunction will be used. The tense of verb in reported speech is present perfect continuous and it will be changed to past perfect continuous tense according to the conversion rules of narration. Hence the correct conversion would be My father said that they had been living there since the day that house had been built.