Cathy is considerate to be so keen to make sure everyone is happy. I would say Robby and Sally would consider each other siblings or classmate sweet hearts.
Using formal language both in oral and written form is an advantage for you. You will be noticed by people and they will remember you more because your language stands out from the language use of others.
Using formal language infers that you are a well-educated and well-round person. People will likely believe in what you say because it will give credence to you and your abilities.
However, when you use formal language with people who are not as well verse to its usage, you will face discrimination or ill-will because they will feel insecure and intimidated by you.
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Apartment, penthouse, farmhouse :D hoped this helped. I wasn't able to translate it back D: