。
She said they were good friends.
Literal
She [topic-は] they [topic-は] good friends are [quotative-と] said.
An interesting double-は sentence: the outer 彼女は marks the speaker (she), the inner 彼らは marks the topic of the embedded quote (they). The quotative と embeds the entire 彼らはよい友達だ as the content of what was said. Multiple は in one sentence usually means one is in an embedded clause or one is contrastive — here the inner は belongs to the quoted clause.