It does not need quotation marks if it contains that.
If you want quotation marks, omit the that and just say
The teacher said “ I am cancelling the test.”
Because you can't just let anyone take over like that and two you will get frustrated about it
Answer:
A. "You," she said, moving toward the stout woman. "Are these your children?"
Gretel changes out her dolls for Nazi posters and when his mom started looking sick. he s also affected when Pavel gets beat up and when he gets yelled at by lieutenant kotler when he likes about Shmuel and makes Shmuel get in trouble