In a dialogue, it is useful to separate the lines of speech given by each character in order to make the conversation clearer and avoid any kind of confusion among the audience. In this case the line of the girl should be separated from the line of the man. Therefore, the correct answer is B: A paragraph break should come after the word smiled.
ethos appeals to validity (proves you are credible), logos appeals to logic and pathos appeals to emotion. All 3 of these rhetorical devices are necessary to write an effective persuasive essay.