It is (in his attic room)! Words like in, about, outside, between are where prepositional phrases start.
"No revision is necessary" for this sentence. When a piece of speech like this is interrupted by named the speaker you don't need to capitalize the first letter of the second half.
Paraphrasing.
It's most closely fits what the question asks and the definitions for the words help clarify.
noun1.a restatement of a text or passage giving the meaning in another form, as for clearness; rewording.2.the act or process of restating or rewording.
In questions like this ALWAYS look up the definitions in the dictionary! More often than not the answer is in the question.