1992 Toyota Tercel smog tes failure

Let start with the cheapest
1) new spark plugs with the correct gap, distributor cap and rotor
2) clean/replace pcv valve
3) new air filter
4) change oil and add stp or lucas oil treatment
5) correct engine timing mark
6) drive around freeway 30 minutes
7) Coolant temperature should be normal range when hot (close to the middle of the temp. gauge)

Now the expensive part.
1) needs new oxygen sensor
2) needs new catalytic converter