Issue with indentation and overall lesson guidance

Below is my code based on the default indentation offered within the application:

Ex 1

This prompted an error in the instruction window (an ‘x’ through the box) as well as a question at the bottom of the editor asking if I defined the function, "city’.

Below is the code which allowed me to move to the next lesson (combined with my initial code):

ex 2

My questions/confusions/frustrations is that if I writing code using the default indentation offered by this program:
A.) why is that not accepted when running the code?
B.) why is the help offered in the lesson so far off the mark when it comes to addressing the issue with the code?
C.) how am I supposed to know what indentation to use and when?

Thank you

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