Head straight in front of you and start going up the ledges. On the first ledge you'll find Lili's bracelet, and then use the twig to swing to the next ledge where you'll find a Psi-Card. Head up the ladder and you'll get a scene with one of the best characters in this game. But before interacting with him anymore, look up and to your left to see a Psi-Challenge Marker. Use your levitation ball to jump up high enough to get it.
Get out your door and press 'Y' next to this guy to jump inside his mind.