This flashback takes us back to when Haley was 3 years old.
One evening we were driving to my sister Monica's house. (On the drive to Monica's house, you pass several buildings that resemble the hospital here in town.) Haley asked if that was the hospital where she was born. We told her that it wasn't the hospital. Haley replied, "Well it looks like the hospital!" John said, "Haley you are very astute." After John said that, Haley yelled, "I'm not STUPID!" To Haley, the "astute" sounded like "stupid".
We all had to laugh. She has always been such a little smarty.