There's many text-based adventures that feature it from the 80's.
If that answer doesn't satisfy you, I'm pretty sure Visual novels in Japan have been doing it longer than any game genre you can think of.
weird.i have played many text based adventures and you always needed to input the choice yourself >_>. As for VNs, i am an avid VN fan but they started in the early 90s. I think Monkey island 1 is older.
Let us change the question to "first game that had both multiple dialog choices and graphics" then ;).
WHO AM I?FFTHEWINNER. WHO ARE YOU?URTHELOSER http://i.imgur.com/xgSex.png