Isn't "Ela diz que o ama." more like "She says she loves him", doesn't it need another preposition for it to be "she tells 'him' she loves him"?
Why is "ela lhe diz que ela lhe ama" wrong?
"Ela o fala que ela o ama". Based on the rules I learned earlier, this seems as though it should pass for correct. She tells him that she loves him.
I think the first has to be lhe. "Ela lhe fala que (ela) o ama."
Rule of thumb: if you could add a "to" in front of the pronoun in English, it's lhe(s), other wise o/a(s)
We haven't learned the prepositions or objects for this yet.