The correct answer is dice.
•Por qué dice él gracias?
You are going to use the word dice to fill the blank because is the correct conjugation in the sentence.
On English the sentences should be:
Why does he says thank you?
Answer:
Compañero-¿Qué dijo?
Tú: Dijo que vendra a verme esta tarde. Para llevarme a la fiesta de esta noche
un buen paladar,
Explanation:
which means that they have a fine appreciation for foods or flavors