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Indentation plays a very important role in Python. You should pay attention to this fact. Your code should look like the following:
if player == computer:
return "It's a tie!"
elif player == "rock":
if computer == "scissors":
return "rock smashes scissors! You win!"
else:
return "Rock smashes scissors! You win!"
elif player == "paper":
if computer == "rock":
return "paper covers rock! You lose!"
else:
return "Scissors cuts paper! You lose." etc.
As you can see, the order must be followed when it comes to indentation.
Now, the program works fine: