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Fanny's prediction about the group having a hard time picking a play was correct. Some want a tragedy, others a comedy, and no one can agree.
Fanny sits back and watches everyone argue.
Finally they have a "duh" moment and decide to perform Lovers' Vows since Mr. Yates is familiar with it already and can direct everyone.
Now everyone argues over who gets what part.
The guys decide easily enough but both Julia and Maria fight over the lead role that will be the love interest of Henry's character.
Henry says that Maria should do the part since Julia is better suited for comedy.
Julia is hugely insulted and Maria is triumphant.
Tom agrees with Henry but then insists that Mary play the other female lead.
Henry tries to argue for Julia to play that part and so does Mr. Yates. But Tom insists Mary do the other part and Julia finally gets so mad that she refuses to do anything and storms out.
The rest quickly recover and start planning eagerly.
After everyone else wanders off, Fanny sits down to read Lovers' Vows and is appalled since the play deals with adultery and kids being born out of wedlock and other scandalous topics. Fanny hopes that Edmund will give them all a big lecture soon.