She said she<u> was wearing</u> her sister's jacket.
Explanation:
Reported speech involves shifting the tense back to the past. In that matter, the Present Continuous turns into Past Continuous in reported speech. Thus, in the sentence given, in direct speech, the verb <em>'m wearing</em> becomes <em>was wearing</em> in reported speech.
Apart from changes in verb tenses, other words such as pronouns, demonstratives and adverb phrases also change in reported speech. For example, <em>my sister</em> is reported as <em>her sister</em>.
I don’t know the context of this but: we must choose ourselves because if we are trying to be someone else our whole life then we won’t get very far and people won’t like us for ourselves.
