In this question, a sentence has been given in Indirect form. Out of the four options suggested,
select the one which best expresses the same sentence in Direct form.
'He says that he is very sorry.'

The direct form of the sentence "He says that he is very sorry" is: He says, 'I am very sorry'. 

Indirect speech: Uses a reporting verb ("says") to introduce someone else's words. 

Direct speech: Uses quotation marks to directly convey the speaker's words.

In this case, the indirect speech uses "that" to introduce the statement, while the direct speech simply removes the "that" and uses quotation marks to represent the speaker's actual words. 

Additionally, the pronoun "he" in the indirect speech becomes "I" in the direct speech, reflecting the speaker's own apology.

So, correct answer is option-C.