My female Chocolate Bunny does the same thing....I interpret it to mean I WANT DOWN NOW!

Bunnies don't, as a rule, like to picked up and held. You must remember that for thousands upon thousands of years they've been prey for humans, birds and animals as dinner. So they have this instinctive fear of things that are larger than they are, that make loud noises and/or that move suddenly. Bonding with a bunny sometimes takes a while. I strongly recommend that you sit on the floor while reading or watching tv and let the bun approach you...they are curious and sooner or later will check you out. Talk to Katie a lot in your normal tone, and say her name as often as you can remember to. Pet her as often as she will let you but never do it or hold her against her will. Eventually you will find that she will approach you for conversation and bunny massages and may eventually consent to be held/carried/and sit on the couch with you...it's a matter of trust, which has to be built. You might bribe her too with sev pieces of parsley, and she will associates you with treats. Yeah it's a cheap trick but it works.

If Katie is a baby (under 1 yr old) she can have rabbit pellets but about the time she turns one you need to cut her down to 2 TBLspoon pellets day, timothy pellets are preffered over alfalfa based pellets (alfalfa too high in calcium for adult buns). She should also get (at any age) unlimited timothy hay (not alfalfa) and 5-7 dark green veggies/day. With improved vet care and nutritional information buns are living to 7-11 yrs where bef they were living about 3-5 yrs. Bunnies living outside have one half the life expectancy of house rabbits.

As you can tell I am a bunny fanatic. I teach bunny basics classes, have 5 house buns of my own and foster abandoned or ill bunnies, and volunteer at a rabbit sanctuary so I have a lot of experience and advice to give.

Good luck with Katie. She sounds like she is in a very loving home and will be spoiled outrageously, as is her right!