and they replied that he could. or and they replied that he could do so.
Which of the two sentences are correct.
Both are technically correct. In the first sentence, the "do so" is implied. In the second one it is written out.
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Both are technically correct. In the first sentence, the "do so" is implied. In the second one it is written out.
This makes the second one more formal but both would work in conversation.
A sentence that starts with a lowercase 'and' is technically incorrect.