When I listen to the entire passage, I clearly hear the word elle in the last sentence. When I listen to the last sentence as given in the exercise, I hear what sounds like 'on' instead of elle. I don't have the best ears, but it is what I hear.
Dictation exercise A1
I hear a filler ‘oh’ at the start of the last sentence, but definitely ‘ oh, elle est très jolie ‘ - presumably ‘elle’ referring to the photo as the last mentioned noun, rather than ‘la famille’.
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