Third Person Objective—the narrator is not part of the story and does not know characters’ thoughts or a feeling, but only states their actions and speech. Imagine you are holding a video camera. You see all the action, but there is no one to tell you what the actors are thinking.
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Option A consists of two independent clauses, therefore there's a coordinating conjunction in between them to help the sentence flow.
It's A. Gerald said that he will be ready at 7:30.
You don't need quotation marks because Gerald is not speaking. Someone else is saying that Gerald said he will be ready.
Hope that helps. :)