* FridgeLogic: José admits that he's never been to Bahia, but still knows who Iaia is. They could have gotten away with it if they had him wait a few seconds, but in context of the movie, José is explaining who Iaia is and what she does at the exact same time as she's singing about it.
** His song about Bahia implies he's certainly been there before. Jose probably meant he hadn't been to Bahia RECENTLY.
*** The whole thing could just be interpreted has a joke; José describing Bahia in great detail and singing passionately about it before finally admitting he's never been there before. It's funny in a PraisingShowsYouDontWatch sort of way.
** Could be that he's heard of Iaia and is telling Donald what he's heard. It's implied that she's very well-known.