The correct answer is: “She told me that she could sleep alone."
Direct and indirect speech is used to describe an event or an event that happened and must time, it involves repeating what was said.
Direct speech refers to saying the exact words of the speaker. For example,
Mary said, “I am going to Church.”
The politician said, “I will build a new community center.”
Indirect speech, on the other hand, repeats what was said without using the exact words. Examples:
“Mary said she was going to church.”
“The politician said he would build a new community center.”
In summary, direct speech is done by repeating the exact words spoken, while indirect speech is done by reporting the words spoken.