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 direct conversation to indirect speech, to which is used to link the two different direct speeches,the appropriate introductory verb asked is used,the question doesn't start with a question word if is added,I is changed to he, your to her, and as Sue's reply is negative , negatively is used.
The other options are wrong as aid , to use, and can can't be used.
The correct answer is D)Ben asked Sue if he could use her phone to which Sue replied negatively.