"James thought everything was fine"
Is this sentence is correct? Yes. If so how can both verbs "thought" and "was" are in past form? There are two clauses: the matrix clause (James thought) and the subordinate clause ((that) everything was fine), the object of the verb (thought). Two clauses, two verbs, two past tenses
"She got many remarks saying she was beautiful."
How many clauses are there in this sentence? Two. what is the object
for this sentenceof the verb and what is thepart sof speech for wordis "saying"? "saying" is a present participle in form and it is the head of the participle phrase, which complements "remarks".