He said, “What a beautiful rainbow it is!” Change into Indirect Speech
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Indirect Speech: He exclaimed that it was a very beautiful rainbow.
Explanation: When the reporting verb is in the past (said) and the direct speech is in the present indefinite tense (simple present tense), then the indirect (reported) speech will change into the past indefinite tense.
Present Indefinite Tense > Past Indefinite Tense.
And if the sentence is exclamatory, we use reporting verbs like exclaimed, admired, cried etc based on the sentence.
Indirect Speech: He exclaimed with joy that it was a very beautiful rainbow.