"1. i was in prison for seven years," said mr. easton. "what do you mean? " asked miss fairchild. mr. easton answered, " actually, i made fake money and was arrested by the police officer." "really? what a pity! " said miss fairchild.
2. 'i was in prison for seven years," said mr. easton. "what do you mean? " asked miss fairchild. mr. easton answered, " actually, i wasn't a police officer." "i knew it, but that's ok. people make mistakes." said miss fairchild.
3. "i was in prison for seven years," said mr. easton. "what do you mean? " asked miss fairchild. mr. easton answered, " actually, i was a criminal who made fake money and was on the way to prison." "really? what a shame! " said miss fairchild.
(are all the passage grammatical and logical? check them, . you.)