Step 1: Understanding the question.
The sentence is in Direct Speech. We need to convert it into Indirect Speech. In Indirect Speech, the verb tense is generally shifted back. "Know" becomes "knew", and "where is" becomes "where was".
Step 2: Analyzing the options.
(A) She told that she knew where was everyone: Incorrect — The word order "where was" is correct, but the word "that" should not be used here.
(B) She told her friend that she knew where was everyone: Correct — This option correctly converts the direct speech into indirect speech with proper verb tense and word order.
(C) She told her friend that she knew where is everyone: Incorrect — "Is" should be changed to "was".
(D) She told her friend that she knows where was everyone: Incorrect — The verb "knows" should be changed to "knew" to match the past tense.
Step 3: Conclusion.
The correct answer is (B) She told her friend that she knew where was everyone.