Which quotation is correctly capitalized? the author explained that he “had begun to write a masterpiece.” the author explained that he “had begun to write a masterpiece.” the author explained that “he had begun to write a masterpiece.”#the correct answer is b*

Yea , the second option is correct that is B.

When you are embedding the quotation in your sentence you are using the quotation marks and continuing as the part of the sentence. Therefore there is no capitalization here. If you wanted to use the sentence in its original form and start with a capital letter you would have to use a colon or a colon and start in a new line.