Snarf “Fine,” she said calmly and then lay back down. The one quoted above is the correct one. lie, lied, lied - to tell a falsehood lie, lay , lain - to recline lay , laid, laid - to place (something somewhere) The bolded form lay is what makes it confusing; it's both the present of one verb and the past of another.
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Snarf“Fine,” she said calmly and then lay back down.The one quoted above is the correct one.