Sara is a "diamond princess", and Maria Minchin has been foiled by her sister. The girls are preparing for the Christmas party. Maria is in her office, hoping not to be arrested for mistreating Sara, when Amelia exhorts her to cheer up. Molly says that Thomas Carrisford and Solicitor Carmichael are complying with Sara's wishes to make a generous donation to the Seminary and continue her education there, to the delight of Ermengarde, Lottie and the other students (even Jessie and Gertrude). Lavinia finally reconciles with Sara, who must return to India for four months to tie up some legal loose ends. Although Sara will return to England in 4 months, Lavinia plans to return home to the United States.