She said, “I am sorry, I am not able to submit those papers”.

She said she was sorry, she is not able to submit those papers.
She said that she was sorry and she will not be able to submit those papers.
She apologized for not being able to submit those papers.
She exclaimed with sorrow that she was sorry and she will not be able to submit those papers.

The correct answer is: C. She apologized for not being able to submit those papers.

The sentence “She said, ‘I am sorry, I am not able to submit those papers'” is an example of a direct quote. In a direct quote, the speaker’s exact words are enclosed in quotation marks. The speaker in this case is apologizing for not being able to submit the papers.

Option A is incorrect because it does not include the word “apologized.” Option B is incorrect because it does not include the word “for.” Option D is incorrect because it does not include the word “apologized” and it uses the word “exclaimed,” which suggests that the speaker was surprised or excited.