Menace, ward {1}
Whenever Nashi, Moon's Legacy attacks, exile up to one target legendary or Rat card from your graveyard and copy it. You may cast the copy. (You still pay its costs. A copy of a permanent spell becomes a token.)
Because you're paying the spell's costs, if the spell has {X} in its mana cost, you may choose its value as normal.
If you don't want to cast the copy, you can choose not to; the copy ceases to exist the next time state-based actions are performed.
You cast the copy while the ability is resolving and still on the stack. You can't wait to cast it later in the turn.