Translation:We like cats and you like dogs.
Many dialects of English differentiate between singular "you" and plural "you" when speaking (for example, some Americans will say "you all" or "y'all"), even though in most cases of written English, we write "you". In Ireland, some people say "ye" (pronunciation can vary) when referring to plural "you". As this exercise uses the plural "libh" in Irish, whoever set the exercise up may have written the translation using "ye", though I see "you" when I look at the top of this discussion.
This isn't the "ye" used in made up "Ye Olde Shoppe" signs.