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Words appear in a grey box over characters' heads, indicating the doctor is speaking. I am guessing this is why this angle is being used -- it would be hard to display a lot of text on any other shot in a room this small. Verbal dialogue is not technically practical, under current constraints of memory. (And I'm guessing the room is small for functional reasons of gameplay and graphic design.)
This is the first time the character gets to make a choice, as indicated by the gloved-hand icon. The parenthetical statements are your character's possible responses.
Depending on the player's familiarity with the Final Fantasy games, he may already be aware of the limitations without having to try out various controller buttons. Familiarity with the series might also lead the player to guess that it is unlikely that these choices will affect future opportunities in the game. (He would be correct to guess this.)
The game makes a small "ping" noise when you make your selection, and the dialogue moves along, window by window, as you cue it.