The sentence which contains a properly punctuate and capitalized direct quotation is C. "Watch how that hummingbird flits from flower to flower," said Diane. Quotation marks always go around the dialogue when writing a direct quote. Capitalization rules still apply much in the same way as they do in regular sentence writing, in that you must capitalize the first letter of the first word at the beginning of a sentence. Punctuation that separates the quote from the speaker must be included with the quotation marks to show that there is a separation.
