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Choose the situation where you would most expect to hear the phrase.
Don't mind If I do thanks.
A) At a party
B) On the street
C) In a shop
D) At the cinema

Answer
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Hint: A phrase can be any group of words which carries a special idiomatic meaning. In simple words, a phrase is just another, common way of speech without a proper verb but can be used to express a particular response. Keeping that in mind while answering questions like these is crucial as sometimes, words can mean many different things simultaneously.

Complete answer:
The question demands a setting appropriate for the given phrase. To answer this question, we must, first of all, understand what the phrase means. The phrase “Don’t mind if I do” is one of many ways to accept an offer. To put it in simple perspective, saying “Don’t mind if I do” is a polite way of accepting something that is being offered to you.

Let us analyze the given options:
Option (A) At a party- is correct as in a party, this phrase is often used when drinks/food are offered, because this phrase is an expression of acceptance. When accepting something that has been offered, a courteous response is "Don't mind if I do thanks." From the list of possible scenarios, being at a party is the most likely to provoke this reaction.
Option (B) On the street- is incorrect as nothing as such is offered to you on the street, reducing the chances for you to use the given phrase.
Option (C) In a shop- is incorrect as nothing is offered at a shop. Instead, a transaction happens at a shop, reducing the chance of using the given phrase.
Option (D) At the cinema- is incorrect as no seats/food is offered but bought, hence reducing the probability of using the given phrase.

Therefore the correct answer is option ‘A’.

Note: Some rules of phrases are:
- In a sentence, a noun phrase serves as a noun.
- In a sentence, a verb phrase serves as the verb.
- A prepositional phrase begins with a preposition and ends with a modifier.
- A noun or pronoun is frequently followed by a present or past participle in an absolute statement.