Question: Which of the following is an error in the sentence: \'He said that he is happy.\'?

Options:

1. No error.
2. Change \'is\' to \'was\'.
3. Change \'said\' to \'says\'.
4. Change \'that\' to \'if\'.

Correct Answer: Change \'is\' to \'was\'.

Solution:

In indirect speech, present tense \'is\' should be changed to past tense \'was\'.