1. "Yes, it sounds nice," smiled the first seed.

2. "Yes, it sounds nice," the first seed smiled.

3. "Yes, it sounds nice," smiled he.

4. "Yes, it sounds nice," he smiled.

(Which one is correct?)

They're all correct -- but # 3 isn't used.

No.4

Carol has a point.

Seeds don't smile.

Seeds don't talk, either.

The correct sentence structure for the given statement is:

2. "Yes, it sounds nice," the first seed smiled.

In this sentence, the subject "the first seed" is followed by the verb "smiled." The quotation marks indicate the direct speech or dialogue being spoken by the first seed. The adverbial phrase "Yes, it sounds nice" is enclosed within the quotation marks and is followed by the comma. This structure is the most common and grammatically correct way to present a sentence with dialogue.