<p>I watched the episode again and again and the way conversation went it made me think that it really isn't right to say that "Toph didn't care" or "Toph didn't suspect because katara <i>thought</i> so".
</p><p>I think Katara was good at lying in this episode. Hadn't Azula lied to Toph during "The day of black sun" episode by saying "<i>I am a 600ft platypus bear with.....</i>blah blah". And Toph said, "Alright, I admit it you are good at it."?
</p><p>Maybe, Katara was so moved to help the poor people that she lied and thought that she lied for purpose of good and thus there wasn't any <i>nervous physical reaction body </i>or <i>trigger of a chemical reaction in the brain</i>.
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