Both answers are correct
A. It is not always necessary to change the verb when you use reported speech. If you report. something and it is still true, you do not need to change the verb:
* direct: Tom said 'New York is more lively than London.'
reported: Tom said that New York is more lively than London.
(New York is still more lively. The situation hasn't changed.)
* direct: Ann said 'I want to go to New York next year.'
reported: Ann said that she wants to go to New York next year.
(Ann still wants to go to New York next year.)
Note that it is also correct to change the verb into the past:
* Tom said that New York was more lively than London.
* Ann said that she wanted to go to New York next year.
But you must use a past form when there is a difference between what was said and
what is really true
Best Regards.
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