Sentence 1: Jim told Jay that girls have cooties. 
 Sentence 3: Jim asked Jay to prove it 
 Sentence 4:  Jay admitted that he was dating Marla 
 Sentence 5:  Jim kicked Jay in the shin and called him a sell-out 
 Option 1: Jay replied that girls don't have cooties. 
 Option 2: Jay replied that Jim was right.