The two schools enter the Theater of Tales for the Circus of Talents at nightfall. They are supervised only by wolves, fairies, and the unseen School Master. Tedros limps through the door last looking for Agatha but doesn’t see her and slumps in his seat. Hester asks Anadil where Sophie is, but nobody knows. Hester is confused that Tedros looks so weak; as Sophie’s nemesis, he should be stronger. Agatha strolls through the door in a beautiful blue dress and makeup, looking stunning. Tedros doesn’t recognize her and thinks she’s new until he notices the ugly black clumps that Agatha always wears. Agatha sits next to Kiko while Hester and Anadil realize that she is Sophie’s nemesis.

The white wolf welcomes them to the Circus of Talents and explains there are 20 duels between Nevers and Evers in order of rank. Each loser is publicly punished by the School Master, who chooses the most impressive talent at the end to reward with the circus crown. The wolf declares the Circus has begun, and the doors lock with Sophie gone. The first four Evers win their battles, with the School Master delighting in punishing Evil.