The two ways of relating what a person has said are 1)direct and 2)indirect (reported speech).In direct speech, the original speaker's exact words are repeated. In indirect/reported speech, the exact meaning is expressed but not necessarily using the original speaker's exact words. Pronouns and possessive adjectives usually change from first or second person to the third person except when the speaker is reporting his own words. Sometimes a noun can be inserted to avoid doubt.
When we turn direct questions and exclamations into indirect speech, they are converted to affirmative statement .( ? and ! is not used).
Option D is correct as when we convert the given question which doesn't start with a question word, if is used, to which is used to join the two dialogues, can to could, and I to he , your to her, I to she and as Sue's answer is negative (no), the adverb negatively is used.
The other options are wrong as I, can, and can can't be used.
The correct answer is D)Sam asked Sue if he could carry her bag for her to which Sue replied negatively and said that she could manage.