I got it to work!
1st. Make sure to indent your if else statement properly. For example:
(four spaces) in case “Cats are better!”
(eight spaces) if hero lacks token “cat”
(twelve spaces) NPC says “You fiend! How could you!”
(eight spaces) else
(twelve spaces) NPC says “Obviously you think that, you have one with you!”
(four spaces) in case “Dogs are better.”
(eight spaces) NPC says “Woof… I was a secret dog all along.”
Also, your second choice should have no empty line between it and the first if statement, but I’m not sure if it actually matters. Maybe a nitpick.
Sorry for dropping last night, stuffs been a bit hectic. Let me know if that works!