I would not use idea (1) it feels uncomfortable in any context, but maybe others have a different view does my explaination is correct?....is my explanation correct? is better

I totally agree with Bill. The correct answer is the second one. When using the reported speech, back-shifting is necessary (there are rare exceptions). Statements in the present tense = reported speech in the past simple tense/present tense if this is still a true fact or a general statement. I said, “my friend is an artist.”. I said (that) my friend is/was an artist. This is still true, so the present is OK. Statements in the simple past tense = reported speech in the past perfect tense: I said, “I went to the cinema.”. I said (that) I had gone to the cinema. Statements in the past perfect tense = reported speech in the past perfect tense: (no change here) I said, “I had eaten too much.”. I said (that) I had eaten too much. Statements in the futur tense = reported speech in the conditional I form: I said, “I will do the chores.”. I said (that) I would do the chores. Keep in mind that there are other rules to remember about the reported speech. I hope that makes sense.

IMO they're pretty much exactly the same. you could choose one over the other based on what the person actually said, but I don't think it matters much