The correct preterite conjugation for the verb in the sentence is 'Quisimos'. It means 'we wanted' in English.
Quisimos no ir a la fiesta. Entonces, nos quedamos en casa.
In this sentence, the correct preterite conjugation of the verb 'querer' for 'Nosotros' is 'quisimos', which means 'we wanted' in English.
This type of exercise helps reinforce the understanding and application of different verb tenses in Spanish.