How To use Kita & Kami

Ian lost two marks to this question in his BM paper. I did not bother much about using either "kami or "kita" in our daily conversation as long as I could put the message across until Ian came to me with his BM paper. Either answer (Kita or Kami) sounds correct to me but I have to find the actual answer and explain to Ian why he got it wrong so that the same mistake will not get repeated.

I googled and got this information from wikipedia:

There are two forms of "we", kami or kita, depending on whether the speaker includes the person being talked to. Kami (exclusive) is used when the person or people being spoken to are not included, while kita (inclusive) includes the opposite party. Their usage is increasingly confused in colloquial Indonesian.

My boy likes to read and view his pictures in my blog and hopefully by putting this down in record, he would get reminded of the proper usage of "Kita" and "Kami".