Lori: And then there were these little girls. Gibb: It's ok. It was a bad dream. Lori: They were singing like this--this song like. Mark: 1, 2, Freddy's coming for you ...You know why they sing that? Because that's when he comes for you.
Lori is describing her dream to Gibb and Kia as Mark walks up and sings the song that Lori heard in her dream.