[susan53]

Ex 1
A is not correct. You are correct with B, but there are actually several possible correct versions of this sentence (ignore the highlighting for the moment - I'll explain later) :

1.It was said that that was all that they could do ...
2.It was said that was all that they could do ...
3.It was said that that was all they could do ...
4.It was said that was all they could do ...


The problem here is that there are three different uses of "that" in one sentence. I've distinguished them by underlining one use, putting the second in bold and the third in italics :

A. that is a conjunction, joining the main clause It was said with the subordinate clauses that was all they could do. It would be pronounced /ðət/ and is an optional component of the sentence - ie it can be omitted as in versions 2 and 4 of the sentence above. In general, the more formal the style, the more likely it is to be included.

B. that is a demonstrative pronoun, the same as in Look at that cat! It is pronounced /ðæt/

C. that is a relative pronoun, as in The house that I used to live in has been knocked down. Like the conjunction, it's pronounced /ðət/. Here it is in object position and therefore is again an optional component of the sentence. In versions 3 and 4 of the sentence it is omitted.


Ex 2

You are correct and the book is wrong. The correct answer is C and A is not possible.

I don't usually recommend burning books, but in this case ....