The first problem u are getting in the bold portion is due to non-indent block, put one indentation there.
second problem is name variable is not defined
following is the corrected one -
print ("Come-on in. Need help with any bags?")
bag=input ('(1) Yes please (2) Nah, thanks (3) Ill get em later TYPE THE NUMBER ONLY')
if bag == ('1'):
print ("Ok, ill be right there!")
if bag == ('2'):
print ("Okee, see ya inside. Heh, how rude of me? I'm Daniel by the way, ya?")
name="Daniel"
print (name + ": Um, Names " + name)
print ("Dan: K, nice too meet ya " + name)
if bag == ('3'):
print ("Heh, Ya remind me of someone I know... *cough* me *cough*")
print ("Oh... Nearly forgot. Names Daniel, Ya?")
print (name + ": Eh... " + name)
print ("Dan: Cool, I now a" + name)