This project tells a couple of fishy jokes. It is really just an example of how you can easily have lots of "dialog" between many characters without lots and lots of "if" and "say" statements.
The octopus stores all of his "phrases" in a List. An "Entry" variable keeps track of which phrase should be shown. The same thing for the Fish sprite. It has its own List. If the entry on its list is empty, it doesn't say something in response to the Octopus.