Another duenna had seen Dona Rodriguez enter Don Quixote's bed chamber. She tattled on her to the duke and duchess. The duchess and Altisidora sneak quietly to the chamber to listen in on the conversation. When they both hear Dona Rodriguez reveal such an intimate secret about the duchess, they both barge in and seize her in a fury. They pinch Don Quixote and flog Dona Rodriguez. The duchess tells her husband what transpired, and he is amused by it.
The duchess sends a letter to Sancho's wife Teresa with a present of coral. The page who is delivering it (who had played the enchanted Dulcinea) encounters Sanchica, who leads them to their house.
Teresa tells the page he needn’t present himself with cerenmony to her, for she is just a country woman. He tells her she is the wife of a governor of an island---then presents her with letters and gifts. Sanchica comments that Quixote fulfilled his promise, and the page confirms this.
Teresa asks the page to read the letter, as she cannot read. The letter from the duchess says she asked her husband to reward Sancho an island for his good qualities, and he has not disappointed her in carrying out his duties as governor. She sends Sancho’s wife a gift. She promises to make a match for Teresa’s daughter. She asks for some acorns, and asks for Teresa to write her a letter about who she is and what she wants.
Teresa is pleased that the duchess isn’t haughty. She agrees to send some acorns and orders Sanchica to look after the page. Sanchica asks for half the beads. Teresa says they are all Sanchica’s, but asks to be allowed to wear them a few days. The page presents Sanchica with the green suit her father wore.
Teresa proudly tells the curate and Samson what has happened. She is glad painted ladies can no longer turn their noses up at her. The curate and Samson are dumbfounded. Samson suggests visiting the messenger to find out more. The page tells them that Sancho is a governor of a town. The duchess is a humble person, and it isn’t unlike her to ask for acorns.
Sanchica would like to see her father in his new attire. The curate and Samson suspect a joke is being played, and yet the presents confuse them.
Teresa is planning on flaunting to the neighbors who usually look their noses down at her. She might even get a coach. Sanchica would also like this. Teresa is also more open to the idea of Sanchica becoming a countess.
The curate comments on the Panzas love of proverbs. He and Samson still don’t believe any of this is true. The page swears it is. The page invites them to come back and see for themselves. Sanchica wants to come, but the page says she should come in a coach. She says she can go on her donkey, but her mother tells her she has to travel according to her new status.
The page wishes to leave so he can return the same night. He finally accepts the curate’s invitation to dine with him.
Teresa doesn’t trust Samson to write her letters and has a chapel novice do it. The page returns with the letters for the duchess and Sancho.