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Context: CHAPTER XI Peter Rabbit and Jerry Muskrat Are Puzzled. 

Jerry Muskrat was more and more sure that his big cousin, Paddy the Beaver, didn't know quite so much as he might about house-building. Jerry would have liked to offer some suggestions, but he didn't quite dare. You see, he was very anxious not to displease his big cousin. But he felt that he simply had got to speak his mind to someone, so he swam across to where he had seen Peter Rabbit almost every night since Paddy began to build. Sure enough, Peter was there, sitting up very straight and staring with big round eyes at the platform of mud and sticks out in the water where Paddy the Beaver was at work. 

"Well, Peter, what do you think of it?" asked Jerry 

"What is it?" asked Peter innocently. "Is it another dam?" 

Jerry threw back his head and laughed and laughed. 

Peter looked at him suspiciously. "I don't see anything to laugh at," said he. 

"Why, it's a house, you stupid. It's Paddy's new house," replied Jerry, wiping the tears of laughter from his eyes. 

"I'm not stupid!" retorted Peter. "How was I to know that that pile of mud and sticks is meant for a house? It certainly doesn't look it. Where is the door?" 

"To tell you the truth, I don't think it is much of a house myself," replied Jerry. "It has got a door, all right. In fact it has got three. You can't see them because they are under water, and there is a passage from each right up through that platform of mud and sticks, which is the foundation of the house. It really is a very fine foundation, Peter; it really is. But what I can't understand is what Paddy is thinking of by building that great pile of mud right in the middle. When he gets his walls built, where will his bedroom be? There won't be any room at all. It won't be a house at all--just a big useless pile of sticks and mud. 
human
Who was laughing a bunch?
gpt
Jerry
human
Who was annoyed by it?
gpt
Peter
human
What were they talking of at that moment?
gpt
Paddy's new house
human
What did the annoyed boy this is was at first?
gpt
Another dam
human
Was the laughing boy polite about the misunderstanding?
gpt
No
human
What did he call him?
gpt
Stupid
human
Why didn't the annoyed boy believe it wasn't a home?
gpt
It  doesn't look it
human
What's missing?
gpt
the door
human
How many does the laughing boy point out there actually are?
gpt
Three
human
Why can't they be easily noticed?
gpt
because they are under water
human
What is the base made of?
gpt
mud and sticks
human
Is the builder related to anyone?
gpt
Yes
human
Who?
gpt
Jerry Muskrat
human
Does he say his critiques to the builder?
gpt
No
human
Why not?
gpt
He was anxious not to displease his big cousin
human
Who had been there watching most of the process?
gpt
Peter Rabbit
human
Was he slouching?
gpt
No
human
What was his posture then?
gpt
sitting up very straight
human
What living space will the builder have trouble adding?
gpt
his bedroom
human
Why?
gpt
There won't be any room