Step 1: Identify the reporting verb.
The reporting verb in the sentence is “say”, which is in the present tense. When the reporting verb is in the present tense, the tense of the reported speech usually does not change while converting it into indirect speech.
Step 2: Change the pronouns.
The pronoun “you” refers to Sheela. Therefore, in indirect speech it becomes “she”. The pronoun “my” remains the same because the speaker remains the same.
Step 3: Use the conjunction.
In indirect speech, the reported clause is usually connected using the conjunction “that”.
Step 4: Form the correct sentence.
Thus the correct indirect sentence becomes:
I tell Sheela that she is my best friend.
Final Answer: I tell Sheela that she is my best friend.