The correct answer is C. Ram asked me how much I had paid for that umbrella.
The sentence “Ram asked me, ‘How much have you paid for this umbrella?'” is a direct question. Direct questions are used to ask for information. In this case, Ram is asking me how much I paid for the umbrella.
Option A is incorrect because Ram is asking me how much I paid, not how much he paid.
Option B is incorrect because Ram is asking me how much I paid, not whether I paid for the umbrella.
Option D is incorrect because Ram is asking me how much I paid, not how much 1 paid.
1 is not a valid pronoun in English. The correct pronoun to use in this case is I.