Which sentence is written correctly?

Greg said they would give the drummer “one last chance;” I think they should look for a new drummer.

Greg said “they would give the drummer one last chance;” I think they should look for a new drummer.

Greg said they would give the drummer “one last chance”; I think they should look for a new drummer.

The correct sentence is:

Greg said they would give the drummer "one last chance"; I think they should look for a new drummer.