This question is an exact duplicate of:
Suppose, today I tell you a story which happened few days ago and I say that "A few days back I met my dream girl at the shopping mall. But when I asked her name she said that she 'is' busy".
I have two questions regarding this phrase.
Question 1 : Here, if at the time of reporting I don't know if she's still busy or not and even then I use 'is', would it be grammatically correct then ?
Question 2 : You see, even if at the time of telling you the story, she is not still busy and I still use 'is', I don't think it would be wrong because I have already put 'said' which is in the past tense, so obviously the listener would understand she was busy when she spoke to me. Isn't it ?