name = raw_input("What is your name?")
quest = raw_input("What is your quest?")
color = raw_input("What is your favorite color?")
print "Ah, so your name is %s, your quest is %s, " \
"and your favorite color is $s." % (name, quest, color)
最後の行の文字列のフォーマット中にすべての引数が変換されたわけではないと言っています