The third option is correct because the error in this sentence is one of subject-verb agreement. The subject in the sentence is ‘something’, which is singular, and so ‘has’should have been used here. The confusion arises because of the plural ‘reports’, but this is not the subject of the sentence; this word is merely a noun, being used here as the object of the preposition ábout’. The object of a preposition is never the subject of the sentence. The reports, however, become the subject of the next (dependent) clause, so the pronoun ‘they’ is used to refer to the reports.
D. That is in perfect condition is misplaced; this sentence could be misread as if someone thinks that your grandmother is in perfect condition rather than the antique dresser.
