Direction: In the following question, a sentence is given in Direct/Indirect speech. Out of the four alternatives choose the one which best expresses the sentence in Indirect/Direct Speech.

They said to us, "We were living in London."

1
They told us that they had been living in London.
2
They said that they were living in London.
3
They said that they lived in London.
4
They said they lived in London.

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