In BrE, is the comma correctly placed outside the ending quote mark in this sentence?
Solution 1:
There is no hard and fast "rule". I was taught that punctuation always comes inside the quotation marks, and never occurs outside it (rather like your full-stop). It's a nice easy rule which provides absolute consistency.
'I,' she said, 'am deathly afraid of snakes.'
Burchfield in New Fowler's Modern English Usage takes the modernist line beloved of people like Geoffey Pullum, who have their own agenda to push.
If the quotation is continuous, without punctuation at the point where it is broken, the comma should be placed outside the quotation marks.
He uses an example similar to your sentence.
Conclusion: do what you think best. There are positions which support both practices.