To correctly fill in the blanks with the appropriate verb forms, we need to consider the context and time reference of each sentence. Here's the completed text with explanations for each choice:
Dear Rob,
I am writing (1) to you from Madrid.
- Present continuous is used here because the action is happening right now as the person is writing the letter.
I am (2) here on holiday with Jane and we are having (3) a fantastic time.
- "Am" is the present simple form of "to be" used to describe a current state.
- "Are having" is present continuous because it describes an ongoing action during the holiday.
We are staying (4) at the Hotel Grande from which there is a beautiful view of the whole city.
- Present continuous is used because it indicates a temporary situation during their stay in Madrid.
We go (5) sightseeing every day.
- Present simple is used for habitual actions or routines.
Yesterday Jane went (6) shopping but I couldn't go with her because I did not feel (7) very well.
- Past simple is used to describe actions that were completed in the past.
When Jane came (8) back she told (9) me that the shops were great.
- Past simple is used to describe completed actions in the past.
I don't understand why she did not buy (10) anything!
- Past simple is used for the action that was expected to happen in the past but didn't.
Anyway, at the moment Jane and I are sitting (11) on the balcony enjoying the view.
- Present continuous is used because it describes an action happening right now.
We're leaving for Barcelona in a couple of days.
- Present continuous is used for a planned future action.
This selection of verb tenses reflects the narrative flow from describing current activities and states to recounting past events and routines during the holiday.