DUNHOUR'S PROFILE

I'll try to be as clear as I can.

I want 2 key items. Wallet and a Dagger. Lets just say we start the game off with 1 of each in your inventory. (easy to do)

I want to walk up to an NPC, have them say "Which item would you like to use" (simple) and give me a list of key items in my inventory to choose from (I think this is the select key item option, but not sure why i have to pick a variable). If I click on Wallet, I want it to do 'X', if I click on dagger, I want it to do 'Y'.

I have an understanding of conditional branching, but I can't get it to work. Can anyone help? What would the NPC event look like?