a. Direct tagged quotation: third-person narrator can quote
the character's thoughts directly, inside quotation marks and using "tag"
phrases like "he said" or "she thought."
ex. "I was wrong to have done that,"
Smith thought.
b. Indirect tagged quotation: third-person narrator shifts
the character's thoughts and the tag phrases into 3rd-person pronouns
and usually drops quotation marks.
ex. He was wrong to have done that,
he thought.
c. Indirect untagged quotation (also known as free quotation,
free indirect style, indirect discourse, or narrated monolog): the quotation
is indirect because the pronouns are 3rd person and "free" because there
are no tags like "he said." (Note also that when
converting a direct quotation into an indirect one, the tense of the verb
normally shifts into past tense):
ex. He was wrong to have done that.