Which of the following sentences correctly punctuates direct dialogue?

The choice that accurately punctuates direct dialogue is the one that uses double quotation marks to set off the spoken words and places the punctuation inside the quotation marks. In this case, it correctly attributes the line of dialogue to the character, "My favorite new song is Elvis's 'Love Me Tender'!"

Furthermore, the structure adheres to standard grammatical rules by using a comma before the opening quote and ending the sentence with the appropriate punctuation mark inside the closing quotation. The use of single quotation marks within the double quotation marks is also correct here, as it differentiates the title of the song from the rest of the spoken sentence.

This attention to punctuation and quotation marks is essential in clarifying the sentence's meaning and ensuring that the reader understands where the dialogue begins and ends. Thus, it illustrates proper formatting practices for writing dialogue in English, demonstrating both clarity and correctness.