Sentence 1: Cathy and her boyfriend were on holiday in Jamaica. 
 Sentence 3: Carlos loved to gamble 
 Sentence 4:  He bets Cathy she can't hold her hand over a candle for a minute 
 Sentence 5:  Cathy's now vacationing in a burn ward 
 Option 1: They became involved in a weird bet with Carlos. 
 Option 2: They met a man named Carlos who warned them not to gamble.