3. Ask and answer questions using the Present Continuous. 1 they/exchange gifts? No/make special dish. Are they exchanging gifts? No, they aren't. They are making a special dish. 2 Gabby/decorate the tree? Yes. 3 they/walk in a parade? No/carry a Christmas tree. 4 boy/wear costume? No/wear party hat. 5 they/dance? Yes.

3. Present Continuous Questions and Answers:

1. Question: Are they exchanging gifts?
   Answer: No, they aren't. They are making a special dish.
2. Question: Is Gabby decorating the tree?
   Answer: Yes, she is.
3. Question: Are they walking in a parade?
   Answer: No, they aren't. They are carrying a Christmas tree.
4. Question: Is the boy wearing a costume?
   Answer: No, he isn't. He is wearing a party hat.
5. Question: Are they dancing?
   Answer: Yes, they are.