What is lol I know what that means?

basically when you start to flashback an example of a cute japanese word

P.1: Hey do you remember something you search of an example of how a cute japanese word is used?
P.2: 😳 *vietnam flashbacks*
*going back into how the P.2 searched "Nya" and how it see an example of that word*
"Chelsea: Nya Nya~
Sarah: Meow Meow, lol I know what that means!!! ^__^"
P.2: oh f*ck 😳

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lol I know what that means - video