Moropant tells Laxmibai that Yuvraj is none other than the boy she had defeated in the game of `kabbadi'. He tells Laxmibai that he has learnt the truth about his father's death and thanks her for seeking revenge from Nelson for his father's death. He further asserts that he wants to join her in the revolution against the British. Meanwhile, Hamilton suggests to Hugh Rose to divert Laxmibai's mind from her goal. Later, Laxmibai is shocked to receive a letter from the King of Scindia about his refusal to join the June 23 revolution, little realising that it is a British ploy. Back in the palace, the prize distribution ceremony for children is on, but when Damodar's name is announced for the best performer, he does not turn up.