I am getting confused about whether rules determine new paragraph positions or if it's sometimes arbitrary. Some choices seem clear cut, but in the sentence: 'I regarded...' it reads fine to me in both the first 2 options; it appears to me a paragraph could end in more than one place and the sense is virtually the same. Is this right?

Is the 3rd better? I feel it is and allows for intended meaning.

**1- ACTIONS AFTER DIALOGUE**

> 
> 'Do not lose hope, the day is yet young my sleepy chicas.' I regarded the non-committal air of resignation before me. A fidgety Norman Dive two rows back was frowning at me.
> 
> 
> 'Stick to Science if I was you Mr Newman.' A loud interjection came from a group in the far corner.
> 
> 
> 'Is Dive still that trombone thing Sir?' I spied who appeared to be the central figure, a surly boy called Feakins.
> 
> 
> 'I’m the trumpet ain’t I?' Dive answered.
> 
> 
> 

**2- ACTIONS BEFORE DIALOGUE**

> 
> 'Do not lose hope, the day is yet young my sleepy chicas.'
> 
> 
> I regarded the non-committal air of resignation before me. A fidgety Norman Dive two rows back was frowning at me. 'Stick to Science if I was you Mr Newman.'
> 
> 
> A loud interjection came from a group in the far corner. 'Is Dive still that trombone thing Sir?'
> 
> 
> I spied who appeared to be the central figure, a surly boy called Feakins. 'I’m the trumpet ain’t I?' Dive answered.
> 
> 
> 

**[3- BEORE AND AFTER DEPENDENT ON CONTEXT]**

> 
> 'Do not lose hope, the day is yet young my sleepy chicas.' I regarded the non-committal air of resignation before me.
> 
> 
> A fidgety Norman Dive two rows back was frowning at me. 'Stick to Science if I was you Mr Newman.'
> 
> 
> A loud interjection came from a group in the far corner. 'Is Dive still that trombone thing Sir?' I spied who appeared to be the central figure, a surly boy called Feakins.
> 
> 
> 'I’m the trumpet ain’t I?' Dive answered.
> 
> 
>