Bella reads a letter Jacob sent to her after her attempts at contacting him have been in vain. Half of the letter is crossed out, but the gist of it is: "We can't be friends because you're friends with vampires." It hurts, but that's life.
During dinner, Charlie surprises Bella with his decision to rescind the lockdown he's put her under after she disappeared for three days to save Edward from committing suicide in Italy (check out the "Detailed Summary" of New Moon for the specifics). Of course, Charlie doesn't know the whole story about Bella's adventure. But after witnessing Bella's pain when Edward left her in New Moon, he bears a giant grudge against his daughter's boyfriend.
Charlie urges Bella to hang out with people other than Edward. Giant hint: Jacob. He tells her that he knows from Jacob's father, Billy Black, that Jacob's been depressed lately. Bella feels guilty.
Charlie hands Bella a letter of acceptance to the University of Alaska. As her transformation into a vampire looms ahead after graduation, this college is her number one choice, because it's far away from Charlie, the sun hardly shines, and it's cheap. Against Edward's insistent offers, she's determined to pay for college herself.
When Edward arrives (still on strict visiting hours), we learn he's also been accepted to University of Alaska. Surprise! But he's also been accepted to every major Ivy League school and wants Bella to apply to Dartmouth. She refuses, but Edward submits her application materials anyway.
When Bella tells Edward she's been taken off lockdown, Edward suggests she go shopping with Alice in the city. But Charlie forbids her to go to Seattle due to reports of a mysterious killing spree. Alone, Edward reveals to Bella that his family suspects the killing spree to be the work of newborn vampires, running amok in Seattle. The prospect of becoming a bloodthirsty newborn frightens Bella.
Jacob becomes a sore point for Edward and Bella. Bella believes that Jacob needs her, but Edward maintains that their relationship is too dangerous:
"You know it's out of the question for you to be around a werewolf unprotected… Do you want us to start a war?" (1.250)
Bella realizes that both Jacob and Edward agree that she has to make a choice between them.