Select the correct direct form of the given sentence.

Looking at his watch Barin Babu observed that they were running more or less on time.

1
Looking at his watch Barin Babu said, “They had been running more or less on time.”
2
Looking at his watch Barin Babu said, “They were running more or less on time.”
3
Looking at his watch Barin Babu said, “We are running more or less on time.”
4
Looking at his watch Barin Babu said, “We have been running more or less on time.”

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