The correct answer is False.
A paraphrase is defined as a rearrange of words from a quotation, meaning the information taken from the author's work (as it is exactly on the text) must be restated using different words and structure. Unlike quotations, paraphrases are not set between quotation marks.
Example:
Quotation
As the teacher said, "Class, you must deliver your essays tomorrow!"
Paraphrase
The teacher said the essay assignment is due tomorrow.