I'm so sorry for not getting this sooner! But yes, I believe you are correct. The correct way to say the sentence is indeed: "I like that boulder," Donkey exclaimed! "That is a nice boulder." However, you could also say it as: "I like that boulder," Donkey exclaimed. "That it a nice boulder." Unfortunately, after I read all the answer choices, I did not quite see one like this. Hope this helps!! :))