Which of the following punctuates dialogue properly

The answer is:

"I love it," She said loudly.

"Yep," I said. "I knew you would."

You need quotation marks when someone is speaking, when they start and when they end. When the quotation mark ends if the punctuation is supposed to be a period (does not apply for ! or ?) you put a comma instead. You also start a new paragraph every time a new person speaks.

Hope this helped!

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