Complete the sentence by filling in the blank with the correct tenses from the given choices by indicating your option.
They say that the Princess _________ incognito at the Sheraton.
will have been staying
They say that the Princess is staying incognito at the Sheraton.
Incognito refers to under an assumed name or under a false name. 'They say' will take 'is staying' to correctly conjugate. 'is staying' is the correct use while other options are out of rule.