Explanations:
Reported speech of the above direct speech sentence is in 'Present countinous tense'. Hence its indirect speech will be changed by these rules- 1. 'told' will be used in place of 'said to'. 2. Conjunction 'that' will be used in place of comma and inverted comma. 3. According to narration rule tense and Pronoun will be change Correct Sentence : Lee told his wife that he was very happy that day.