You are getting this error because you are trying to assign "Owner" a string value instead of a Person value when generating your Cats and Dogs lists.
Instead you need to do something like this:
new Dog{Name="mao", Owner=new Person{FirstName="manhesh", LastName-"birdadar"}}
Or you could do
new Dog{Name="mao", Owner= persons.First(p => p.FirstName=="mahesh")}
The second approach uses Linq to find the appropraite person from the persons list you previously created based on their firstname.