Answer:
I think it's because when you're laughing, you're happier because something made you smile while if you were just talking you wouldn't be as joyful.
Explanation:
The answer is the first option: We live on the same street.
The nominative case takes subject pronouns only, since the pronouns are the subjects of the sentences. They are: I, you, he, she, it, we, you, they.
Options b, c and d have object pronouns - them, me and him - acting as subject pronouns and, consequently, as subjects to the verbs, making the sentences grammatically wrong.