[-Rebel Son-]

You were close, it's like this

public OnDialogResponse(playerid, dialogid, response, listitem, inputtext[])// Begining rules
{
if(dialogid == 1)
{
if(response)
{
Setplayercolor(playerid,"color");
}
else
{
SendClientMessage(playerid,*Color*, "You Selected 'NO' ");
}
return 1;
}
if(dialogid == 2)
{
if(response)
{
SendClientMessage(playerid,*Color*, "your now PD");
}
return 1;
}
return 0;
}