R. Nathan says: On the inside. You say on the inside, but perhaps on the outside? It is, therefore, written (Ibid.) "and the blood will be for you as a sign" — for you and not for others. R. Yitzchak says: On the outside — so that the Egyptians see (their gods being slaughtered), and their insides be "ripped apart!"
Rabbi Nathan and Rabbi Yitzchak Stake Out Dramatically Different
Mekhilta Tractate Pischa 6:4