Spoken words give a look into how the characters acts. You can hear the feelings of multiple characters. Internal thoughts give you direct feelings of one character; the narrator:)
Think of verbs as "action words" done by the subject. The subject in this sentence is "we". What did we do? "We" "heard" and had "seen". So the verbs would be "heard" and "seen"
The conflict is internal because she does not know whether she should follow her heart and be with romeo and go against her family or do what is right and be loyal to her family
The answer is A I believe