In the French and Indian war the Indians sided with the French and in the American revolution they sided with the British.
Answer:
Direct speech- "She is talking on the phone"
Indirect speech- She said she was talking on the phone
It may give them a negative view of you and potential damage your future at that college/company.
If this is a true or false question, i'd go with true.
I'm not exactly sure what you're asking....
EDIT: The purpose of signal phrases are to help establish the context for a quotation.
