After the last chapter, Arya has gone missing for several days, but now she's been found and brought before the king and a full court of people. (This is still on the way to King's Landing; someone please invent an airplane already.)
Sandor Clegane and some other Lannister soldiers are still out searching for Arya, Nymeria, and Mycah, so it's a good thing that she was found by the less violent crowd.
Cersei tells a story about how Arya, Nymeria, and Mycah viciously ganged up on Joffrey. Arya tells her side of the story. And the tie is broken by Sansa who says…actually, nope. Sansa knows the truth (and Eddard knows she does), but she "loves" Joffrey too much to tell the truth.
Robert says that the parents will discipline their children (no need to make this a big legal case), but he agrees with Cersei that the wolves are dangerous.
Luckily, Nymeria is long gone: she ran away into the forest. But Lady is still here, so Eddard executes Sansa's wolf. Boo.
At the end of the chapter, Sandor Clegane rides up with a dead body in a bloody sack. It's Mycah.