In reading 2, the English translation is as follows:
Tanaka Sensei:
Yes, is that there the movie theatre?
Tom:
Yes, that’s correct.
Timothy:
That’s a cinema too, right?
I take it from the context that the teacher was pointing at a picture from the Osaka station (“is that a movie theatre?”), and then pointing at a picture of the Kyoto station (“that’s a cinema too, right?”). The lack of stage direction and switching from the term ‘movie theatre’ to ‘cinema’ has really confused me.