This is how the conversation goes, interpreted in adult English for everyone’s benefit. Most of the conversation was in, as to be expected, dog and baby talk…

“Grandpa! Dog has a toy!”

“Mmm.”

“Grandpa! DOGGIE has a TOY!

“I really, really want Gracie’s toy!”

“You have toys all over the house. Get one of your toys, sweetie.”

“But Gracie’s toy is MOST fun!”

“Ask nicely and see if she’ll give it to you?”

“Drop, Gracie. Drop.”

“Good doggie, Grace. Thank you for sharing!”

“See, Grandpa? Grace gave me her TOY!”

“I love Grace!”

“GOOD DOGGIE!”