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There is no diagram here! Please post a diagram so we can help.
It was either the third statement or the last one that I would have chosen. I believe "we laughed at the dog with the shaggy fur who was catching the ball" would be the best, however.
B. Felicity said that she is leaving for practice at <span>4:15.</span>
<span>That one is correct because you could only use quotations when someone is talking. Since you are telling a person what Felicity said, you don't have to use quotes. </span>