Time passes, as Orwell so subtly and artistically informs us with the line, "Years passed."
Ironically, the animals are happy about the fact that they no longer work for tyrannical masters. Orwell is winking at you, and occasionally nudging you with his (pointy) elbow.
The pigs start walking on two legs. They train the sheep to say, "Four legs good, two legs better," which we all can agree has a nicer ring to it than version 1.0.
Then comes the big, famous line from the book – the line that, for the rest of your life at cocktail parties, people will say in hopes of sounding smart, and you, thanks to having read the book, will be able to identify and laugh along into your shrimp with everyone else: "All animals are equal, but some animals are more equal than others." Let’s all take a moment.
The pigs meet inside the farmhouse with the neighboring farmer Pilkington, who congratulates them on running a farm with the hardest working and most underfed animals in England. More nudging of ribs.
The name Animal Farm is done away with and the pigs go back to calling it Manor Farm.
Watching the pigs, as a result of the clothes and alcohol and the standing on two legs, the animals peeking through the window realize there is no difference between the pigs and the humans, and there is in fact no way to tell them apart.