When Zelda tries to grab Link she can't. When Link wants to kiss Zelda, Link can touch Zelda and Zelda can touch him. Then later Link tries to get his sword but can't.
When one of the skeleton creatures says "And Link is with her", it comes out of Ganon's mouth.
Stalfos: (to Link's unconscious body) Nice hat!
Link: (Jumps up singing) Zelda loves me! Zelda loves me! Zee-elda loves me!!
Ganon: They're here! (snaps his fingers to release several of his monsters)
Zelda: Great, now look what you've done.
Link: Relax, Princess, they can't see me remember?
Zelda: But they can see me!
Ganon: The only way that Zelda could see him is if... no, no, that's impossible.
Stalfos: What is it, master?
Ganon: The only way she could see him is... if she was in LOVE with him!
Link: You swing that sword like a girl.
Zelda: I am a girl.
Link: Yes, uh, I've noticed.
Zelda: Ughh! Even when you're a ghost you're disgusting!
Link: Well excuuuuse me, Princess!
Link: Say, I wonder why you're the only one that can see me.
Zelda: Just my bad luck, I guess.
Zelda: Love you? Ha! It's just that without your body you're even more useless than usual.
Ganon: (Link gets hit with beam rather than Zelda) Well, not quite what I planned, but it will do.
Link: (to Zelda) Don't tell me you love me for my body!
This episode was shown with the live-action Mario segment called "Tutti Frutti Mario".
In this episode we find out that Zelda really does love Link.