She said he was handsome.

Literal

She [topic-は] him [object-を] handsome [as-だと] said.

ハンサム is an English loanword that's become a standard Japanese na-adjective — ハンサムだ, ハンサムな男 — applied almost exclusively to men's looks. Note that loanwords often have grammatical category constraints in Japanese; ハンサム works as a na-adjective but not a verb. The full pattern Xを Yだと言う marks subject-of-claim with を and quotes the predicate with だと.