The last four lines are indeed meant to be one paragraph. You have two pieces of reasoning partly correct so far, but I'm not gonna say which just yet if thats okay. I will start to soon so that people can start working on it, but I'll wait for a few more responses first.

I'm gonna say now that if anyone guesses the correct answer without reasoning then I'm not gonna tell them (It isn't Cait Sith or Reeve). If you can't show at least some reasoning, then you haven't got the answer (except by sheer fluke).