If Grace is not both a ghost and lovely, then Grace is either a cat or cute.
All cats are cute. Ghosts do not exist. An animal is either a cat or a dog. Nothing that barks is lovely.  If something is a dog, then it barks. Grace is either a cat and a dog, or neither a cat nor a dog.
∀x (Cat(x) → Cute(x)) ∀x (¬Ghost(x)) ∀x (Cat(x) ∨ Dog(x)) ∀x (Bark(x) → ¬Lovely(x)) ∀x (Dog(x) → Bark(x)) (Cat(grace) ∧ Dog(grace)) ⊕ (¬Cat(grace) ∧ ¬Dog(grace))