It's a bit weird...
Votre voiture est petite. - Oui, mais c'est petit dans mon garage.
translated to: Your car is small. - Yes, but my garage is small
hmm... having the first part of the dialogue: 'Votre voiture est petite.'
the given correct answer: 'Oui, mais c'est petit dans mon garage.' sounds to me as: Yes, but it (the car) is small in my garage.
now, the English 'Yes, but my garage is small' I would rather say in French: 'Oui, mais mon garage est petit.'
I might be wrong but this french statement / opinion example is somewhat not the best one here
anyone to explain this ?