Is the passage of dialogue written correctly or incorrectly?

"Is someone here missing a watch?" asked Father.
"I'm not," said Benjamin.
"I am," stated Nick.
Father replied, "Nick, is this the one you're missing?"
"Nope," said Nick. "I think that might be Uncle Dylan's," interrupted Benjamin.
"I will hold onto it until he returns," promised Father.

A. incorrectly
B. correctly